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- Starbucks Corporation (NASDAQ:SBUX) expanded its delivery and online services in China through a new partnership with Meituan that will give customers more options, including social features. Meituan is described as China’s biggest food delivery platform with more than 660 million transacting users. The company notes that 60 stores in Beijing, Shanghai, Shenzhen and Chengdu now include the service and more expansion is anticipated.
- The coffee giant says the partnership also marks the delivery debut in China of its Starbucks Reserve range of coffees.
- The effort by Starbucks to build customer loyalty in China follows the tech flywheel it has built up in the U.S.
- On Wal lStreet, Bank of America calls Starbucks’ loyalty program a uniquely valuable asset as it ties consumers more closely to the brand and increases order frequency.
- Analyst Sara Senatore: "The more customers use the app, the better Starbucks’ data become, and the more effectively the company can incentivize them to increase app (and brand) use further. This virtuous cycle has driven growth for over a decade."
- Shares of Starbucks (SBUX) are down 0.80% premarket to $99.32.
- Read the latest breakdowns on SBUX from Seeking Alpha authors.