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Costco rolls out delivery option for custom cakes via Instacart
The Apex Times

THE APEX TIMES

Business/The Apex Times/Aug 29, 8:16 AM EDT

Costco rolls out delivery option for custom cakes via Instacart

The retailer said members can get certain popular bakery items delivered without going to a warehouse, expanding its convenience push through a third-party delivery platform.

2 min readEditor-approved Apex article

Costco is making it easier for members to get some of the warehouse club’s most popular items without physically visiting a store. According to a report published by TheStreet and syndicated by Yahoo Finance, Costco has begun offering delivery for custom cakes through Instacart.

The announcement centers on custom cakes, a category that tends to drive strong in-warehouse traffic around birthdays and other events. By moving that purchase channel into an app-based delivery flow, Costco is effectively shortening the time between ordering and receiving items, while also reducing the need for members to plan around store visits.

For Costco, the change fits into a broader pattern of how large retailers are using third-party logistics to extend their reach. Instacart provides a last-mile delivery network, while Costco remains responsible for the assortment and the product itself, creating a way to test delivery demand without building a fully owned delivery operation.

The report does not provide additional detail on geography, delivery fees, timing windows, or which cake formats are included. It also does not specify whether delivery availability will expand to other bakery products or whether Instacart will handle additional categories beyond cakes.

Costco’s members are accustomed to warehouse pricing and limited, curated assortments. Adding an off-warehouse path for a high-attention item like a custom cake could be a way to preserve the value proposition while meeting demand for last-minute convenience.

From a retail-sector perspective, the move highlights how grocery and club retailers are increasingly layering digital ordering on top of physical inventory. For consumers, it reduces friction. For companies, it can also help capture orders that might otherwise shift to competitors with stronger delivery penetration.

Still, the scope of the rollout remains unclear based on the information in the published report. Costco has not been shown, in the materials available here, to have disclosed whether the program is nationwide, how quickly new markets are added, or what inventory or customization constraints apply to delivery orders.

What to watch next is whether Costco follows up with a broader delivery expansion beyond custom cakes, and whether it provides clearer operational guidance such as rollout coverage, fulfillment timelines, and any impact on bakery department staffing or production schedules.

Why It Matters

  • Delivery for high-interest items like custom cakes can shift customer behavior toward digital ordering and away from store-only purchase habits.
  • Using a third-party platform such as Instacart can help Costco scale convenience offerings without building a separate delivery infrastructure.
  • If demand proves strong, the approach could extend to additional product categories beyond bakery items.
  • How widely Costco expands the program, and what operational limits apply, could determine whether delivery becomes a meaningful part of member spend or stays limited to select locations.

Sources

Key Facts

  • Costco began offering delivery for custom cakes through Instacart, according to a report published by TheStreet and syndicated by Yahoo Finance.
  • The change is designed to let members obtain certain warehouse items without visiting a Costco warehouse.
  • Instacart is used as the delivery channel to provide app-based ordering and last-mile delivery.
  • The report does not disclose additional details such as which locations are included, pricing for delivery, or delivery timing windows.

Retail & Consumer Related