Starbucks Corporation (NASDAQ:SBUX) will now make it even easier for Americans to get their coffee. Working with UberEats, the coffee giant announced that it would be offering delivery in about 2,000 of its U.S. locations next year. While delivery is not new for the company as it has already introduced the service in China, it’ll be a big step in its home market.
Given the premium that consumers already pay for Starbucks coffee, a delivery charge may have less of an impact on its customers than it would be on more price-conscious coffee drinkers. And given the popularity of the Amazon Alexa and home delivery, paying to get your coffee delivered is not as crazy an idea as it may have been in the past. This is simply part of a growing trend where consumers have shown a desire to avoid having to go in-store to make purchases. Groceries, electronics, and now even coffee will be available to be purchased from an app and delivered directly to the consumer.
Starbucks has continually adapted to consumer trends over time and this is no different, and something that it will need to do if it wants to keep a strong grip on the market. While sales were up 10% in its most recent quarter, the industry is getting more crowded and competitive, and Starbucks needs to stay ahead of the curve if it wants to grow or even maintain its market share.
Year to date, Starbucks has seen its share price grow by more than 15% and if delivery proves successful we could see even stronger results in 2019.
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