Starbucks expands delivery

Following its launch of delivery to the Empire State Building in October, Starbucks is offering one-hour delivery in a new, larger location.



Starbucks is partnering with on-demand delivery service Postmates for a pilot program where customers in Seattle can have food or beverages delivered to them within designated areas. The offering is an extension of the Starbucks mobile order and pay feature on its app.



“Our customers are highly engaged with mobile order and pay, placing five million transactions a month, so delivery becomes a natural extension that provides another easy and convenient way to meet them where they are in their day,” said Adam Brotman, Starbucks chief digital officer.

Customers in the Seattle test area can now choose “delivery” when placing their orders on the Starbucks iOS app, with the same customization options as in store. The delivery option is also integrated with the My Starbucks Rewards loyalty program.



Once the order is complete, it is transmitted to Postmates system. The Starbucks and Postmates systems select the closest location to the delivery address, and couriers can skip the line. Customers can track the progress of the delivery in real-time on a map.



Initially, customers will be given a 60 minute window for delivery, but Starbucks says most orders will arrive in less than 30 minutes.



More retailers are continually expanding the areas and products they deliver while cutting down the time involved, with Amazon.com continuing to lead the way. Freshly prepared food and beverage items are a natural candidate for delivery and necessitate timely response to orders. Starbucks is establishing itself as an early leader in on-demand coffee delivery, but likely will see more competition soon.