Grubhub and Starbucks Partner for Home Service
After releasing dismal quarterly results, Starbucks (SBUX) is attempting to revive sales by partnering with food delivery giant Grubhub to bring frappuccinos and lattes to customers’ homes in the United States.
The world’s largest coffee company said Thursday that the service would launch this month in select locations in Colorado, Illinois, and Pennsylvania. It aims to be accessible in all 50 states by August.
Starbucks sees interest in home delivery increasing.
Meg Mathes, vice president of digital experiences at Starbucks, said that demand for home delivery of its goods is increasing, with the firm seeing “double-digit growth in the U.S. delivery business this past quarter.” She also said that clients “want convenience in their everyday lives.” DoorDash (DASH) and Uber Eats (UBER) already transport the company’s items to households in the United States.23
Liz Bosone, VP of Enterprise Partnerships at Grubhub, said that the agreement would expand the alternatives available to its clients, “while strengthening our enterprise offering and growing our merchant supply in markets nationwide.”
Starbucks goods ordered by Grubhub+ customers who pay $9.99 per month will not be charged for delivery and will have cheaper service costs. Everyone else will be charged the regular Grubhub delivery and service fees.
In late April, Starbucks announced fiscal second-quarter profits and revenue that fell short of analysts’ expectations, with same-store sales declining 4% as foot traffic in its cafes fell. That sent shares plunging. They rose 1.5% to $82.37 as of 1:35 p.m. ET Thursday, but are still down around 14% year to date.Starbucks has partnered with Grubhub to deliver its goods directly to consumers’ homes in the United States. The program launches this month in three states and is anticipated to be accessible statewide by August.
Dexian Investments Limited offers comprehensive research on various investment opportunities, enabling clients to stay ahead of market trends and make well-informed choices. These services include investing, banking, securities, and the management of investments. Please visit our website at. www.dexianil.com.