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Starbucks’ New Delivery Service

Starbucks’ New Delivery Service by VickyRuYunCheng

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According to this article, Starebucks, despite having the 5% increase in sale, disappointed the investors as its share dropped about 6%. As a result, Starbucks will soon be implementing a delivery system next year, hoping to increase its total revenue.

As mentioned in Jessica’s blogpost, the new delivery system will not help to contribute much to the total revenue for Starbucks. There are so many questions regarding the home delivery. How can Starbucks attract customers if they have to pay at least $10 for delivery? If they were to have free delivery, then would the price increase in order to cover up the expense? And if they do deliver, how are they supposed to preserve the drinks? Starbucks needs to address those issues.

In Emi’s blogpost, she mentioned that Starbucks has been a “third place” or an “affordable luxury”- a place where people could hang together outside work and home. For the longest time, Starbucks has been offering comfort and pleasing environment to its customers. In the new delivery system, Starbucks will not be able to offer the comfort that it once provided to the customers. As a result, many will not be prone to use the delivery system as many of the customers go to a Starbucks store not only for the coffee, but also because of the atmosphere and comfort that the brand has been providing.

In conclusion, the delivery system does not seem like an ideal way to increase the total revenue for Starbucks, perhaps Starbucks should invest in portable coffee shops, which can provide the convenience and the comfort, instead?

Story written by VickyRuYunCheng

 

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