Starbucks Partners with Meituan to Expand Delivery Service in China

(Photo by CNBC)

[Asia Economy Reporter Yujin Cho] Starbucks is expanding its delivery and online services in China, the world's second-largest market after the United States, by partnering with Meituan.

According to CNBC on the 18th (local time), Starbucks announced that it has partnered with Meituan, China's largest delivery platform with 667 million users, to expand its delivery services.

Starbucks currently offers this service at 60 stores in Beijing, Shanghai, Shenzhen, and Chengdu, and plans to expand the service to 5,000 stores nationwide in China by the end of the year.

Accordingly, users can enjoy the same benefits provided by the Starbucks app, such as menu ordering and the Starbucks Rewards loyalty program, through the Meituan app.

Starbucks is facing intensified competition in China, its largest market outside the U.S., due to the rise of native coffee chains such as Manner Coffee, HeyTea, and Guming.

Moreover, as store sales declined due to business suspensions caused by COVID-19 lockdown measures, Starbucks is expanding partnerships with local companies as a strategy to overcome these challenges.