Starbucks, the famous cafe with a global outreach, has signed on a recent partnership with Uber’s delivery service Uber Eats which would enable the cafe to reach out to customers and deliver coffee all the way to their homes. Uber Eats posted a Tweet earlier this morning, announcing the collaboration between the two companies. As plans are being made to introduce the business model to more than 2,000 stores all across Europe, Starbucks says that the service would be available early on in the next year, 2019.
— Uber Eats (@UberEats) December 14, 2018
Uber has more than just market revenue to gain from this deal. As it would turn out, Uber Eats has a goal to cover more than 70% of the United States population with their service offerings. Even though this partnership won’t begin until early next year, this is still a massive boost to Uber’s delivery services platform as it lines up with direct competition for market presence against Postmates.
Starbucks isn’t going into this business model blind, or in a hunch either. The cafe has tested this model through four different experiments in many areas around the world. The experimental business model named Starbucks Delivers was launched in Miami, Tokyo, and across 30 different cities in China where it took the aid of delivery giant Alibaba and food delivery service Ele.me. They also have partnered with Swiggy in India.
The giant doesn’t stop at partnering, they’ve in fact launched their own delivery service in two supermarkets in Shanghai and Hangzhou.
With their success found in China where it reached more than 30 cities and 2,000 stores across the country, Starbucks is confident in applying the same experimental business principles to their operations in the USA. With the goals of Uber Eats aligning, perhaps this may be a model which can be seen being deployed across the rest of the world soon. However, the one thing which remains for certain is that it would help both Starbucks and Uber gain more market shares and revenue at the same time. If the market responds well, there’s a good chance that Starbucks would start it’s own delivery service in those markets as well.