Starbucks is said to be forming a joint project with Alibaba’s food delivery unit, Ele.me, to deliver coffee and snacks to Chinese consumers.
“Alibaba and Starbucks are exploring new ways to deepen our long-term partnership in China. We have no more to share at this stage”, a spokesperson the Chinese side said as quoted by the WSJ.
Last week, Starbucks reported record-breaking financial results for the 3Q and earnings that topped expert estimates.
The coffee company said it will begin testing new delivery options in Beijing and Shanghai, starting in 2019, to boost sales.
Belinda Wong, CEO of Starbucks China assured customers in a release that the new delivery service will meet the high standards as the as the company is expanding business there.
It is reported that Starbucks faced with growing competition in China, especially from the Luckin Coffee startup, which recently attracted $ 200 million from investors. The company took at the beginning of this year. The customer receive their coffee in 30 minutes or faster. If the delivery takes more than thirty minutes, it is free.
Luckin Coffee has 660 outlets in 13 cities across China, while Starbucks has 3,300.
Ele.me food supplier owned by Alibaba Group has said it will spend 1 billion yuan ($ 147.21 million) from July to September on marketing and subsidies to become a major player in the Chinese market.