- Suzy RyooPartner, Vice President of Technology & Innovation at Atom Factory & Cross Culture Ventures
In China 2 months ago, I was fascinated by Luckin Coffee, a 1 year old startup with 1,400 stores & an in app ordering + delivery model. Pondering about the comp in the US, there wasn’t one unless you combined Starbucks with Uber Eats. Here we are now, 2 months later.
As consumers are getting more and more used to having everything including meals delivered to them, the Starbucks + Uber Eats strategy makes sense as a new revenue stream. It also strengthens Uber Eats’ market presence.
No mention of the how much the added delivery charge is on your $5 Venti Latte. I’m a huge Starbucks fan as they’ve transformed the quality of coffee in the US, but what we consumers are paying for this type of convenience, over the long term, is money not being saved for retirement...take it from a guy who retired early through frugality and investing. 😉
My view on this is pretty simple if you are hosting people in you office it might make sense but to your home, not for me. I have excellent coffee makers at I am sure costs far less than the tip might be.
- Maryam BanikarimPurpose-driven change agent. Chair (RSF). Former CMO at Hyatt. Gannett. NBCU. Univision...
Pretty sure they already know where you live... be it from the loyalty program or the app that allows you to cut the line. They had begun testing this... and like all things convenience is king.
I understand a big coffee run at work, sorta. It is great tasting, but so is mine which lasts easily two weeks.
Two Starbuck Venti’s are approximately $10, plus delivery= $4. $14 x 365 days = $5,110!!
This is true innovation: “The company says it has solved some of the challenges delivery poses in China with splash-proof lids, delivery containers designed to keep drinks hot or cold and tamper-proof packaging seals.”
Now Starbucks will know where you live. Great.
Want a drone to hover over your cubicle, gently dropping your special Starbucks latte with a triple shot into your hand, automatically debiting your gold card from your nearby wallet? That’s what we are headed towards. (I suggest still crossing the street, if your legs still work.)
I wish they had this when I was still working there! OOOOH THE TIPPS!
Great to see Starbucks adapting and breaking into a new market. Interesting to see how much people will really be willing to pay (assuming delivery fees, tip, etc for the uber eats driver) for something as simple as a coffee.
Already paying a huge premium to drink STRBX (even more so after June’s increase, the third in 3 years) - not willing to pay a delivery fee as well.
Most value in an office coffee run situation to reduce unproductive coffee trips. Made easier with bill splitting apps like Venmo. Wonder if Uber Eats will try an in-app bill split equivalent to the Uber Fare Split. Still, with someone that takes their coffee a very specific way, it’ll be interesting to see the input options and how reliable SBX will be in delivering correct orders. Despite tech advancement, e.g. thermo cups, still questions marks around practicality.
"Starbucks is farther ahead on delivery in China, where the service has been expanded to more than 2,000 stores in 30 cities since the chain joined with a delivery unit of Alibaba Group Holding Ltd. The company says it has solved some of the challenges delivery poses in China with splash-proof lids, delivery containers designed to keep drinks hot or cold and tamper-proof packaging seals. Dedicated drivers in China promise to deliver Starbucks coffee in 30 minutes or less. The chain also is creating a virtual store that allows customers to use only one app to order gifts or products for themselves and have them delivered."
First it was “smoking breaks,” now “coffee breaks” will be a thing of the past. I’ll look forward this when the delivery is intravenous, but I realize not everyone prefers drip coffee to espresso.
I doubt that'll be around long. Are Americans too lazy to not use their coffee machines? Maybe if it was like a food vendor truck that went to special events or what have you...
Awesome strategy. The bigger problem that Starbucks faces though is the lack of coffee drinkers.
Levels of lazy heretofore unknown. Half the joy of getting coffee to me is being able not to be at home or work for a minute! But this will save on real estate...
Years and years ago well before drive throughs, coffee was $.10 per cup and came in a cardboard cup...oh the simplicity of day’s gone by....today, too many choices, too expensive and it’s all about making it easier for the customer....return me to the tough times
There are three essential human needs: convenience, convenience, and convenience.
I wonder if savvy consumers will do the math ... money and carbon footprint ... and rather for an in-home or in-office coffee solution like Nespresso?
I can see this with high rise environments maybe, but here in the suburbs, the model won’t work. Wonder how they will keep the coffee hot, don’t think a pizza cover will work? They are getting on the delivery bandwagon, not built for them...
Starbucks coffee sucks, isn’t this the company that refused to send our troops in the Middle East their coffee?
Great idea if they don’t charge a fortune for the service
Not on my dime. I’ll perk my own
I, for one, love the experience that visiting a coffee shop brings to daily routine. Human interaction, warmth and the chance that a new beverage may tempt me to try something different. I can see the delivery system working well, first thing in the morning, when numerous workers are all craving their daily caffeine injection. But, for individuals, I can’t see temptation, benefit, or need.
I am one of the few on this commentary that doesn’t care for Starbucks but supports the local flavor of coffee, Cameron’s as well as Caribou both from Minnesota. Until they start getting “environmentally” hip like Cameron’s with their Ecopods which are 100 percent compostable, comes with a filter on the bottom instead of plastic, then I do not think that I would pay for coffee delivered by a service. And cold coffee is not my thing anyway.
There’s a Starbucks or coffeeshop on every corner. People, just take a break and walk to that coffeeshop.
Then again, I’m not mad at all. It’ll free up space for those who like working from Starbucks.
They're about to change the game!!
Well, this is dumb.
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