A startup offering to deliver Costco hot dog delivery services has sparked controversy after charging $18 for the retailer’s iconic $1.50 food court combo. While some consumers appreciate the convenience, critics point out that the pricing is excessively steep.
SoCal Startup No Tip Offers Third-Party Costco Delivery
According to recent reports from KTLA, a Southern California-based startup called ‘No Tip’ is providing a delivery service that brings popular Costco food court itemsβsuch as hot dogs and pizzaβdirectly to customers’ homes or offices. The business operates as an independent enterprise with no official partnership with Costco. Customers can place orders through the website, prompting delivery personnel to visit a physical Costco warehouse to purchase and transport the food. The service can even be used by individuals who do not hold a Costco membership.
Massive Markups on Popular Food Court Items
The core issue lies in the inflated delivery prices. The famous Costco hot dog and beverage combo, sold in-store for $1.50, costs $18 through No Tip. This represents a $16.50 increase from the original price, translating to a staggering 1100% markup. Similarly, a large pizza priced at $9.95 in-store costs $30 for delivery, while a rotisserie chicken chef salad priced at $7.99 in-store carries a $28 delivery fee. However, the company notes that these delivery prices include all tips and applicable service fees, meaning no additional costs are added at checkout.
Targeting Corporate Events and Large Gatherings
The company guarantees refunds if food fails to arrive by the promised time. No Tip founder Jack Chen explained in an interview with SFGATE that the service is primarily geared toward corporate events, parties, and large family gatherings rather than individual households, with operations capable of handling orders for up to 200 people at once.
