🚀 New Partnership
Grubhub announced on June 6th that it will begin delivering Starbucks beverages and food to US customers. The service will start in Pennsylvania, Colorado, and Illinois this month, with plans to expand nationwide by August. Most items on the Starbucks menu will be available for delivery, including customizable orders.
📈 Market Expansion
According to Grubhub, Starbucks is the most searched business not yet available on its marketplace. With this new partnership, Grubhub aims to compete with DoorDash, Uber Eats, and Postmates, all of which already offer Starbucks delivery. This expansion is expected to drive significant growth for both companies.
💼 Strategic Moves
The announcement comes shortly after Grubhub's new collaboration with Amazon, which added Grubhub to its website and app, offering free Grubhub Plus memberships to Prime members. This membership, normally $9.99 per month, waives delivery fees for orders from participating merchants, including Starbucks.
📉 Starbucks' Recent Performance
Starbucks reported a decline in same-store sales in April, the first since 2020. However, the company saw double-digit growth in its US delivery business last quarter. Former CEO Howard Schultz has called for a strategic overhaul to reinvent Starbucks' mobile ordering and payment platform. "Our new partnership with Grubhub will help fuel this growth by increasing availability of Starbucks products to Grubhub’s tens of millions of customers," said Meg Mathes, VP of digital experiences at Starbucks.
Do you think this partnership will boost Starbucks' sales?
