TECHNOLOGY

Starbucks looks West with delivery expansion

BY Dan Berthiaume

Starbucks Coffee Company is rolling out its delivery service with Uber Eats in three new U.S. metro markets.

The coffee giant is expanding Starbucks Delivers to Dallas, Houston, and Orange County, Calif. The delivery program powered by Uber Eats is now available in 11 U.S. markets. In addition to the three new markets launched today, Starbucks also offers the delivery service in Boston, Chicago, Los Angeles, Miami, New York City, San Francisco Bay Area, Seattle, and Washington, D.C.

Initially introduced as a pilot program in Miami, Starbucks Delivers rolled out to six markets earlier this year and continues to expand. The service is available via the Uber Eats mobile app on iOS and Android devices. Powered by the Uber Eats platform, customers can follow orders within the mobile app, tracking progress and location of their Uber courier to ensure delivery of their purchases within 30 minutes. Starbucks has also developed packaging to help ensure the temperature of hot and cold menu items.

Starbucks says that customers have access to approximately 95% of core menu items available directly from the Starbucks menu via Starbucks Delivery, and will be able to customize their orders as they would when ordering on Starbucks mobile apps. Delivery orders have a $0.49 delivery fee and 15% service fee. There is a small order fee of $2 for orders under $10.

Starbucks Delivers was first announced in August 2018 in China through a partnership with Alibaba and on-demand food delivery service Ele.me. By the end of 2018, delivery services had expanded to 2,000 stores across 30 cities in China, while also being introduced to select stores in Tokyo and Miami.

The company has also tested Starbucks Delivers in partnership with Uber Eats in Europe, starting with a limited pilot in London that launched in January 2019. The trial is testing and learning from a small number of company-operated stores as the company looks to scale this option to licensees. Additional global markets with delivery initiatives include India, Hong Kong, Singapore, Indonesia, Vietnam, Mexico, Colombia, and Chile.

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