Starbucks Mobile App Based Delivery System

Published Date : Nov 03, 2014

The corporate tradition of the afternoon coffee run may soon come to an end due to a new policy being adopted by Starbucks. The largest coffee shop chain of the world Starbucks has expressed a certain change in it coffee delivery system. And this will finally be implemented in certain select markets by the second half of the year 2015. Howard Schultz, the Chief Executive Officer of Starbucks has stated that this plan can be described as “ecommerce on steroids”. As per this new system, the customers will be allowed to create standing orders and they will receive their orders at their desks on a daily basis.

This step taken by Starbucks is a part of the coffee chain giant’s strategy to ensure significant growth of sales in the Unites States, especially at a time when consumers are refraining from discretionary purchases and their greater dependence on mobile-phone applications that ensure higher convenience. In the third quarter of this year, the sale of Starbucks all across the US increased by almost 5%, which was less than the expected figure of 6.2%.

Starbucks has its own mobile app that enables customers to make payments and gain reward points via a scanning technique in their respective smart phones. This mobile app is used by nearly 12 million highly active users who use this app extensively. 

During the third-quarter earnings discussion led by Adam Brotman, the Chief Digital Officer, it was concluded that almost 16% of all the transactions taking place at Starbucks is via mobile devices. According to the Chief Executive Officer of Starbucks, there is no other retail store or company at the international or the domestic level that can be compared to Starbucks in terms of such an ongoing trend.