Uber Eats, Starbucks Pair On Coffee Delivery

Starbucks unveiled some of its future growth strategies during an investor meeting on Thursday (December 13), including a partnership with Uber Eats in the U.S.

“In locations where drive-thru isn’t feasible we are testing platforms like delivery,” Roz Brewer, chief operating officer, said, according to CNBC.

The company expects to bring Starbucks Delivery to about a quarter of its U.S.-based, company-owned stores by the end of the second quarter. It already tested out the service in Miami, where people embraced the chance to have their favorite coffees and teas delivered, said CEO Kevin Johnson. He noted, however, that not all drinks will be available for delivery because they may not travel well.

“We were very thoughtful about this,” Johnson said.

And Brewer added that the company has seen that customers make larger orders when they get their drinks delivered. “We’re seeing an expanded ticket. And that average ticket is what we need to see happen as we approach delivery,” he said. “So we’re encouraged right now, but we are monitoring that very carefully.”

Starbucks already has a successful delivery service in China, delivering in 17 cities in the country in 1,100 stores after launching in September in Shanghai and Beijing. With more than 3,000 stores already in operation in the country, another 2,000 are slated to open by 2021.

The U.S. announcement comes as Starbucks lowered its earnings per share on an adjusted basis, stating that it will now rise at least 10 percent a year over the longer term instead of the 12 percent it had originally predicted. The company also said long-term consolidated revenue growth will be between 7 and 9 percent.

In addition, Starbucks’ new chief financial officer, Pat Grismer, said its partnership with Nestle will add to its adjusted earnings per share in fiscal years 2020 and 2021. Nestle agreed to pay Starbucks $7.15 billion in cash for the exclusive rights to sell its packaged coffees and teas worldwide.