Costco is ramping up its home grocery delivery efforts by teaming up with a third-party service.
Shipt, an online grocery delivery service, said Tuesday that it was adding Costco to its delivery service in the Tampa metro area. The service is available to consumers using the Shipt app.
Costco already has home grocery deliver service available in the San Francisco market through Instacart, another third-party delivery service. Costco didn't respond to requests for comment.
Up to now, Costco has focused on delivery to businesses, said Zachary Fadem, a Wells Fargo analyst covering the grocery segment. He said the Shipt service represents part of Costco's "experimentation" in the home grocery delivery market.
Shipt, which is a venture capital-backed company founded in 2014, previously partnered with Whole Foods and Kroger's Harris Teeter division for grocery delivery in certain U.S. markets. Shipt home delivery of groceries is available for an annual membership fee of $99, which gives members unlimited free deliveries, according to the company.