Costco Wholesale Corporation (NASDAQ:COST) has spent years resisting the idea that its warehouse model needs a delivery layer, and that resistance is easing fast. The company recently expanded its Uber Eats partnership from 17 states to 47. It lets members order fresh produce, bulk groceries, and household essentials for on-demand or scheduled delivery with real-time tracking. Uber One members get free delivery on qualifying orders above $60 at select locations. Uber Technologies, Inc. (NYSE:UBER) executive Andrew Macdonald framed the expansion as proof of “the scale and opportunity Uber can bring to retailers” chasing rising delivery demand. For investors, the interesting part isn’t the headline partnership; it’s who actually needs it more.
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Bull Case
For Costco Wholesale Corporation (NASDAQ:COST), the expansion makes nearly 600 warehouses available through Uber Eats across 47 states. Customers can order bulky groceries and household goods without making a warehouse trip. If that convenience causes members to shop more often, Costco could increase sales from existing members and give them another reason to renew.
For Uber Technologies, Inc. (NYSE:UBER), Costco adds a large retail partner with recurring grocery and household spending. The agreement broadens Uber Eats beyond restaurants and demonstrates that the platform can support a national retailer. It strengthens Uber’s pitch to other merchants that want delivery coverage without building their own network.
Costco can now sell memberships directly inside the Uber Eats app. This gives the company a fresh way to reach younger, convenience-minded shoppers. An initial discount makes it cheaper for new members to join. At the same time, immediate access to delivery gives customers instant value before they ever set foot in a physical warehouse.
This partnership helps Uber solidify its Uber One membership program. It gives subscribers another great reason to order often and spend at least $60 to get free delivery. Bigger orders and regular grocery purchases will boost total spending per customer. This makes the Uber One membership far more useful than simple restaurant delivery.
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Bear Case
Costco Wholesale Corporation (NASDAQ:COST) also expanded delivery through DoorDash while maintaining its long-standing Instacart relationship. So Uber does not hold an exclusive position. Multiple platforms can increase Costco’s reach. However, they also limit Uber’s pricing power and make this agreement less defensible as a standalone competitive advantage.
Costco orders can include bulky and temperature-sensitive goods, which require more driver time and vehicle capacity than a typical restaurant order. If delivery fees, order density, and the $60 threshold fail to cover those costs, higher transaction volume may add less profit for Uber than the national scale suggests.
The arrangement also inserts Uber Technologies, Inc. (NYSE:UBER) between Costco and the member. Costco gains convenience. Nonetheless, it shares part of the customer experience and delivery economics with a third party. Service failures, markups, or weak order accuracy could damage Costco’s value perception even when Uber controls the final delivery.
More home delivery could mean fewer store visits for Costco. That hurts impulse buying and spontaneous discoveries in the aisles. If members simply order through Uber Eats instead of visiting stores, Costco gains no new sales. Instead, the company loses direct customer contact and trades high-margin store purchases for a more costly delivery service.
Hedge Fund Sentiment
Costco Wholesale Corporation (NASDAQ:COST)’s hedge fund count fell to 104 in the second quarter of 2026 from 107 in the first, even as position value rose to $11.59 billion from $10.40 billion, according to Insider Monkey’s database. Uber Technologies, Inc. (NYSE:UBER) holder count also slipped slightly, to 151 from 153, with position value essentially flat at $9.33 billion versus $9.30 billion.
Conclusion
Uber gets the bigger win from this partnership. The deal strengthens Uber One, drives regular grocery orders, and proves Uber’s value to other major store chains. Costco gains a helpful new way to sell memberships and offer quick delivery.
However, because Costco works with other delivery apps too, the impact stays small. Both companies must still encourage large, frequent orders. Otherwise, high delivery fees for heavy items will eat into profits and pull shoppers away from profitable warehouse visits.
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