Starbucks is partnering with Uber Eats to expand delivery of its coffee and mocha Frappaccinos across the U.S. in early 2020.
The service, available via the Uber Eats app, allows customers to order 95% of Starbucks’ main menu items, which will be delivered in special packaging that helps maintain the appropriate temperatures. Customers must pay through Uber's app for the delivery.
Last year, the coffee chain debuted its Starbucks Delivers in 11 markets, including Miami, Los Angeles, and Dallas. After receiving positive customer feedback, the company decided to expand the service nationwide.
The news comes just one week after McDonald's decided to expand its delivery partnership with Uber Eats to a second delivery service. Last week, Uber rival DoorDash announced that it would add McDonald’s to its service, partnering with 200 restaurants beginning July 29.
Uber Eats had been the exclusive partner for McDonald’s delivery since it debuted in 2017. McDonald’s delivery service has since grown into a $3 billion business that’s available from 9,000 restaurants, or more than half of the company’s U.S. footprint.
Uber has been working with restaurant chains, including Subway and Popeyes, to grow its food delivery business. But Uber faces intense competition from DoorDash and Gruhub, both of which exceeded Uber Eats in total monthly sales in May, according to data analytics firm Second Measure.
Uber Eats is still Uber’s fastest growing business, accounting for $536 million in first quarter revenue, an 89% increase over the same period last year. And it could get an additional boost as the company rolls out a subscription service that bundles its food delivery service with its ride-hailing, bikes, and scooters. The company is testing the service, which costs $24.99 monthly and allows customers to get discounts or fixed prices on the company’s car service, free delivery on Eats, and free rides on its bikes and scooters.
Meanwhile, Starbucks says it's working with Uber Eats on “innovation and technology integration” to improve in-store operations, delivery packaging, and delivery speed. In addition to working with Uber Eats, Starbucks also has its own Mobile Order and Pay app that lets customers order food and drink items for pickup. The company’s app also offers a rewards program.
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