Shipt and Costco are planning to launch a grocery delivery service for customers in the Tampa, Florida, metro area with the possibility of future expansion.
Shipt, an online, membership-based grocery delivery service, joins the list of outlets offering delivery for Costco purchases that includes Instacart, which does Costco deliveries in Arizona, Colorado, California, and New York, MarketWatch reported.
Shipt is currently in 35 markets, serving 17 million households, stated MarketWatch. It offers unlimited grocery deliveries for $99 a year.
Shipt started delivering in the Tampa Bay region in July 2015, providing the service to Publix customers, according to the Tampa Bay Business Journal. The company also makes deliveries to ABC Fine Wine and Spirits.
"We founded Shipt to simplify the grocery shopping experience, and are pleased to give our dedicated members access to unmatched savings as an extension of their Shipt memberships," Bill Smith, founder and chief executive of Shipt, said in a statement.
"As we continue to scale Shipt on a national level, we look forward to offering more options for delivery to our Florida members today, and to Shipt members across the country in the future," he continued.
Last October, Shipt expanded into the greater Houston area in a partnership with H-E-B, one of the country's largest grocery retailers.
"Ever since the launch of Shipt in the Houston area, requests from customers located outside the original delivery area have been pouring in," Armando Perez, H-E-B senior vice president, said in a statement then.
"After working diligently to accommodate these requests, we are excited to offer access to Shipt grocery delivery to more of our valued customers in the Houston area. We've enjoyed partnering with Shipt thus far and look forward to this expansion," Perez continued.
Grocery sales online in the United States totaled $34 billion in 2014 and could bulge to $177 billion by 2022, according to analyst estimates, noted MarketWatch. Research showed 12 percent of Americans ordered groceries online last year with older millennials 25 to 34 years old leading the way.
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