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Part of UBS analysts focused on Costco's membership growth while Bank of America trimmed its price target due to a cautious view.

How could Costco's sales growth affect Instacart's delivery volume?

Likely What happens if… A possibility worth considering, not a forecast.

Costco's strong sales may boost Instacart's delivery volume Costco's recent sales report showed significant growth, with overall same-store sales increasing 11.4% in September and core comps rising 7.6%. As a major retailer, Costco utilizes delivery services to complement its physical warehouse locations. The company maintains a successful long-term partnership with Instacart in the US and Canada, meaning the increased traffic and consumer demand generated by Costco's strong performance could translate into higher usage and volume for Instacart's grocery delivery services.

Reported by 1 independent outlet Written Oct 11
Effect
Mild positive
How direct
Stated in the reporting
When
Within weeks
The story
Gone quiet

How it reaches Instacart

Reported by news outlets

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The facts so far

As reported. Each one links to where it comes from.

  • Costco reported overall same-store sales increased 11.4% in September.cnbc.com
  • Excluding gas and currency fluctuations, core comps rose 7.6%.cnbc.com
  • Costco has a successful long-term partnership with Instacart in the US and Canada.cnbc.com

Why it matters

For Instacart, maintaining strong relationships with major retailers like Costco is critical to its operational volume and revenue stability. As a key delivery partner, Instacart benefits directly from the increased purchasing power and consumer traffic generated by its partners' successful sales periods.

This dynamic is part of a broader trend where large retailers are expanding their digital and delivery footprints. Costco's investment in delivery options, alongside partnerships with DoorDash and Uber Eats, shows a strategic push to capture more consumer spending across various channels.

What we don't know yet

  • Will Costco increase its investment in delivery options following the tariff refund?
  • How will the nationwide expansion of Costco's DoorDash and Uber Eats partnerships affect Instacart's market share?

What would change this answer

Costco announces further price reductions due to tariff refundsThis could increase the frequency of consumer purchases, leading to a stronger, more immediate lift in Instacart demand.
Costco reduces its reliance on third-party delivery servicesThis would diminish the volume of orders flowing through Instacart, potentially slowing growth.

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Questions worth asking

Ideas the web ties closely to this story that the explainer doesn't mention. These are prompts for your own research: Brind hasn't answered them.

  • About Shipt

    Since Instacart benefits from the increased consumer demand generated by Costco's strong performance, how might competitors like Shipt adjust their strategies?

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Who else could feel it

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Reporting

Keep going

The full eventCostco Reports 11.4% Same-Store Sales Increase in September Everything aboutInstacart

Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.