Starbucks snubs Uber in loyalty partnership
Seattle – Starbucks Corp. is snubbing Uber in a new extension of its loyalty program. Starbucks is partnering with rival online transportation service Lyft to offer Lyft drivers and passengers the chance to earn points in its loyalty program.
In the new multi-year deal, all Lyft drivers will have the option of becoming My Starbucks Rewards (MSR) loyalty program gold status members, and both Lyft drivers and riders will have the opportunity to earn Starbucks loyalty points (called “stars”). Additionally, Lyft drivers will be able to receive Starbucks e-gifts as tips from customers using the Lyft app.
Later this year, Starbucks and Lyft will pilot a transportation benefit for Starbucks employees in one unspecified test market.
“With Lyft’s presence in 65 cities across the U.S., where we also have Starbucks serving the same communities, we knew this relationship would benefit our partners, Lyft’s drivers as well as our mutual customers that are already coming to Starbucks and using Lyft services,” said Adam Brotman, chief digital officer, Starbucks. “This is a great win-win. Our digital loyalty ecosystem will strengthen Lyft’s ability to attract and retain customers in a highly profitable way, while at the same time accelerating the incrementality of redemption of rewards.”
Howard Schultz, chairman and CEO of Starbucks, said in a New York Times interview that while his company respects Uber, it selected Lyft as a loyalty partner based on the long term and on business practices.