Great ResignationInflationSupply ChainsLeadership

Starbucks Teams Up With Spotify To Bolster Mobile App

January 19, 2016, 12:17 PM UTC
Spotify plans to go public without selling new shares.
Photo credit: Getty Images

Starbucks Coffee (SBUX) has lined up a new partner to bolster its industry-leading mobile app.

The coffee giant on Tuesday announced the launch of a new digital music offering with streaming music service Spotify. The companies are joining forces to allow users of the Starbucks Mobile App to instantly identify music playing in a Starbucks store, and save such songs to a playlist on Spotify and have access to that music anywhere.

The service will be available at 7,500 Starbucks company-operated stores in the U.S., 10 million Starbucks loyalty members, and U.S. Spotify users.

For Starbucks, the move allows it to bolster its reputation for innovation. And for Spotify, the partnership could introduce the service to millions more potential subscribers.

“Music has played a pivotal role in our stores for over 40 years and we have been at the forefront of how to integrate it into a retail environment,” said Starbucks CEO Howard Schultz in a statement. “We are merging the physical and digital, providing new access points for Spotify as they continue to grow globally”

The new Starbucks music platform is available to both Apple (AAPL) iPhone and (GOOG) Android users within Starbucks Mobile App.

Users will also be able to view recently played songs and, save songs to a personal playlist on Spotify, among other features.

Starbucks mobile app is an industry leader, allowing among other benefits the coffee company to accept mobile orders before a customers comes. Analysts estimate some 20% of orders are placed via Starbucks’ app. As of November, Starbucks had 10 million active loyalty members in the United States, up 28% from a year earlier.