Costco partners with DoorDash for home delivery in Auckland

Costco is entering the home delivery market through a unique partnership with DoorDash.

Costco is partnering with DoorDash to offer home delivery.

Members of DoorDash’s Dashpass subscription service will have no delivery fee.

Those without a membership will pay more for those items than a member.

Costco is entering the home delivery market through a partnership with DoorDash, in a move that will give Kiwis access to the popular North American retailer - membership or not.

From today, Kiwis will be able to gain access to Costco’s wide range of groceries, household essentials and bulk savings without needing a Costco membership.

But those without a membership will pay more for those items than a member.

Costco’s Gold Star Membership card, which give customers access to the store, normally costs $60 per year.

Through DoorDash, Aucklanders will be able to receive deliveries on-demand either on the same day or through scheduling ahead.

Delivery prices range from $2.99 for deliveries within 10km and additional charges based on distance and basket size exceeding 10km.

Members of DoorDash’s Dashpass subscription service will have no delivery fee. The Dashpass costs $9.99 a month.

Costco's first New Zealand store is in Westgate in Auckland. Photo / Michael Craig

DoorDash New Zealand general manager Bradley Thomas, said the business wanted to deliver effortless convenience and affordability.

“We’re always looking for ways to make everyday shopping easier, and our partnership with Costco means Aucklanders can now get incredible value and quality delivered straight to their doorstep,” Thomas said.

Costco members who sign up for delivery and enter their card details will pay less for products than non-members.

However, as part of the launch, existing DoorDash customers will receive $20 off their first Costco order when they spend $150 or more.

Costco New Zealand country manager Chris Tingman said the retailer’s members love the savings and convenience of shopping in bulk.

“This partnership gives members greater access to Costco’s quality products and value, knowing that busy lifestyles call for more convenient ways to tackle the weekly shop,” Tingman said.

In February Costco revealed its full-year financial result for 2024, reporting total sales revenue of $361.5 million, up by 6% compared to 2023’s $341m in revenue. It had a gross profit margin of 9.06%.

The business reported a net profit before tax of $833,000, a significant increase from its net loss before tax in 2023 of $20.5m.

However, income tax expenses of $1.76m mean the New Zealand arm reported a total comprehensive loss of $929,000.

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.