Starbucks is extending its delivery service and intends to offer it at one-fourth of its U.S. company-operated coffee shops. Starbucks is going to work together with Uber Eats to deliver coffee in six major cities. The coffee giant announced the news on Tuesday. Uber Eats will associate with Starbucks Delivers to offer on-the-wheels coffee to Americans. The six major cities are San Francisco, Boston, Chicago, Los Angeles, New York, and Washington DC. The service will start in San Francisco on Tuesday. The company’s service will begin in other cities in the upcoming weeks. The delivery service is set to reach one-quarter of U.S. company-operated stores in a couple of weeks.
Starbucks Deliver, the coffee chain’s delivery service, initiated as a pilot program in Miami after a successful launch in China. The coffee giant partnered with Alibaba and delivery service Ele.me. The company launched its China-based delivery service to 2,000 stores across 30 cities in China by 2018. After that, Starbucks aimed to expand its delivery operation with Uber Eats. It sought to establish the same type of service in the U.S. as of China. So, customers using Starbucks Delivers will be able to place orders via the Uber Eats App. The app is available for both iOS and Android users. Both cold and hot beverage items are on the list. Customers can also track their order’s progress as it arrives.
Uber Eats provides a list of around 95% of Starbucks menu. The company charges $2.49 per booking as a delivery fee. But the cost has no impact on the growing demand of Starbucks products. Despite increased delivery cost the company has a strong market and repeat business throughout the day. Starbucks said it aims to gain new customers who are already using Uber Eats. The company could deliver to existing customers who want delivery. The coffee giant has 29,000 stores across the word. Whereas, Uber Eats provides service to 200,000 restaurants from 36 countries. According to executives of the company, delivery service works best in dense urban areas. The company says it aims to run other delivery pilots outside the U.S. in current year.
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