The news: Costco customers in France and Spain can now place orders for same-day delivery, thanks to a new Instacart partnership.

• Instacart will power Costco’s delivery websites in both countries and work with local fulfillment companies for picking, packing, and delivery.
• Prices will be the same as in-store, although orders will be subject to a flat service fee.

Why it matters: The deal gives insight into both companies’ growth strategies.

Costco’s same-day delivery expansion reflects the company’s hopes for its ecommerce business, which is currently growing faster than overall sales. Same-day delivery is even outpacing ecommerce in growth, CFO Gary Millerchip said on the company’s Q1 earnings call in December, citing Costco’s reliance on partners like Instacart and DoorDash.

For Instacart, the deal with Costco could pave the way for similar international partnerships that allow the company to monetize its technological capabilities and fulfillment expertise without shouldering the expense of building out a delivery network. The company’s international strategy rests on finding retail partners to anchor its expansion, CEO Chris Rogers told Bloomberg, resulting in a slower but more intentional push overseas.

The implications: Instacart’s partnership with Costco could form the template for deals to come, as retailers look to international markets to offset uncertainty in the US and search for less capital-intensive ways to boost their same-day delivery capabilities.

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