Instacart Teams Up With Costco to Launch Prescription Delivery Service
Instacart expands its online delivery offerings by partnering with Costco to bring prescription medications directly to customers' doors. The new service responds to a massive surge in demand amid the COVID-19 pandemic.
Instacart launches a new prescription delivery service through a partnership with Costco, responding to surging demand during the COVID-19 pandemic. The service is currently available at nearly 200 Costco locations across eight states and Washington, D.C., with plans for a national rollout in the coming months. Customers receive a text message from their Costco pharmacy when their medication is ready, which includes a link to schedule a delivery directly through Instacart.
The delivery process prioritizes safety and privacy by placing prescriptions in sealed, tamper-proof bags and offering contactless drop-offs. Instacart shoppers scan the customer's ID for age or identity verification without requiring a physical signature on qualifying orders. Additionally, customers have the convenience of adding grocery and household items to their prescription delivery order and scheduling drop-offs up to a week in advance.
This expansion comes as Instacart experiences unprecedented growth, with last week's total order volume reaching 400% higher than the same period last year. The average customer basket size also increases by more than 25% month-over-month. To manage this massive influx of demand, the company adds nearly 150 new retail locations to its marketplace since March 1 and doubles its customer support "Care" team from 1,200 to 3,000 agents.