Why are Costco’s Same-day Powered By Instacart prices higher than Costco’s in-warehouse prices?

Costco’s item prices are marked up higher than your local warehouse, however, the item markup is reduced for Costco members. The order minimum is $35.

The pays for the delivery service and to provide competitive pay to all shoppers working on the Instacart platform. Unlike a tip, which can only go to the shopper delivering your order, a markup allows Instacart to pay all shoppers (including those for example, that also pick ordered items in the warehouse).