Starbucks Goes Digital
Customers ordering coffee using Starbucks’ Mobile Order & Pay app now represent 20 percent of the coffee chain’s in-store sales in the US. According to the company’s recent quarterly report, 4000 Starbucks locations in the U.S. now offer mobile ordering and payment service. Full coverage for its 7000 US locations is expected by the end of the year and international expansion of the service is expected thereafter. The Drum reports that this rise represents “more than double the figure from just two years ago and the coffee house is processing nearly nine million transactions each week.” According to PaymentSource, Howard Shulz, Starbucks’ chairman and chief executive officer has said that, “Our mobile commerce platform is literally stronger than ever.” He went on to state that at Starbucks locations that accept mobile orders, “lines are shorter, service is faster and in-store operations are more efficient.”
Starbucks is still expanding its mobile payment platform and combined loyalty program, leveraging partnerships with Spotify, Lyft, and the New York Times to offer proprietary content and services to members of its My Starbucks Rewards program. Starting next year, the ten million members of the loyalty program will be able to read selected New York Times articles for free on the coffee chain’s mobile app. Additionally, back in May, the company announced a partnership with music streaming service Spotify, offering its 150,000 U.S.-based employees Spotify Premium subscriptions to let their employees curate in-store music programming. The music selections would later be accessible on Spotify via the Starbucks Mobile App allowing users to access songs and playlists they first heard in-store.
This week the company announced a partnership with ride-sharing company Lyft, including offering reward points for both users and drivers of the service. The coffee chain is also considering the possibility of Lyft drivers providing transportation for Starbucks employees. According to GeekWire, “John Zimmer, co-founder and president of Lyft, said the partnership brings together two daily rituals: a cup of coffee, and a commute to work.”
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