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Benzinga reports that Uber and Costco "have entered into a grocery delivery pilot with 25 locations across the state of Texas. This deal marks Uber's first pilot with a food wholesaler in the U.S.

"Costco members could have their groceries delivered within hours with Uber and Uber Eats. In the coming weeks, seven additional Costco warehouses will be available to Uber users via Uber and Uber Eats mobile apps.  The minimum order amount is $35, and delivery is free for Uber Pass and Eats Pass holders."

The test is slated to take place in Dallas, Austin, and Houston.

KC's View:

There was a terrific interview with Uber CEO Dara Khosrowshahi in the New York Times the other day, in which he was clear about his ambitions - he's been eliminating non-core businesses that were distractions and dreaming "about pushing a button and getting a piano delivered to your home in an hour and a half.  I think that’d be really cool … We’ll keep working on go-and-get. Anywhere you want to go, anything you want to get, however you want to get it, we’ll be there for you."

Unlike Instacart, with which Costco also has done business, Uber seems to have no ambitions about becoming a retailer.  Which, in my view, makes Uber a potentially better partner.