When Uber and Costco announced their new partnership in May 2024, I was excited. Since I get 10% off Uber and Uber Eats orders with my credit card, I thought this would be an easy way to save on Costco orders. I even got $60 off my first Costco order with an Uber Eats promotion. I had a feeling good things were coming my way.
Since then, I’ve used Uber Eats one more time to order groceries from Costco. And that was one time too many. While it was super convenient to have my Costco items delivered to my door—no lines, no chaos in the parking lot, no shopping cart madness—it was expensive and I didn’t get everything I wanted.
If you’re new to Uber Eats or a Costco member, here’s why I wouldn’t use the app to order your groceries.
Costco products are more expensive on Uber Eats than in the store
Costco almost always charges higher prices for products on delivery apps and on costco.com than it does at department stores. In theory, this helps pay for the delivery services and supports the delivery customers of these apps. But the markups can cause you to spend more than you would have in person.
For example, I recently shopped for groceries at my local Costco near Newark, New Jersey (at the Clifton store). If I had purchased the same products through Uber Eats, I would have spent about $27 more. Here’s a breakdown of the price differences.
|
Costco items |
Price in store |
Price at Uber Eats |
|---|---|---|
|
Protein bars |
19,99 € |
24,30 € |
|
Organic eggs |
7,99 € |
$9.71 |
|
Multivitamins for adults |
11,49 € |
13,97 € |
|
Mandarins |
7,49 € |
7,89 € |
|
Butter croissants |
5,99 € |
$7.28 |
|
Kirkland Signature Sparkling Water |
10,99 € |
$13.36 |
|
Kirkland Signature Egg Bites |
11,99 € |
14,57 € |
|
Cheese mix package with 4 varieties |
9,59 € |
$11.66 |
|
Diapers |
44,99 € |
54,70 € |
|
In total |
$130.51 |
$157.44 |
Data source: Author’s receipt, Uber Eats
Don’t forget the fees and tips for the delivery person
Even though Costco items are more expensive, you still have to pay delivery and service fees to Uber Eats. Depending on whether you have an Uber One membership, this can add another $12 or so to your total.
For example, if I weren’t an Uber One member through my credit card, I would have to pay about $14 in delivery and service fees (including tax). That would bring my estimated total to about $172 (rounded up) (with my Uber One membership, it’s about $162).
Finally, there’s the delivery driver tip. I always tip at least 15% on my Uber Eats orders. Since my credit card earns a decent amount of cashback on Uber Eats, I’d basically give them my cashback when they deliver my goods. On this order, I would have tipped the driver about $25. That would bring my total to about $200 (or $187 with my Uber One membership).
That’s a decent amount for the convenience. Do the math yourself, but you’re probably better off shopping at your local warehouse to save $50-$70.
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Why I’ll Never Order Grocery from Costco on Uber Eats Again was originally published by The Motley Fool
