Starbucks expanding Uber Eats partnership to grow share of $24 billion US online food delivery market.

Starbucks Coffee announced plans to make Starbucks Delivers available throughout the U.S. in early 2020 through an agreement with Uber Eats as the preferred delivery provider of Starbucks items.

The expansion follows an 11-market roll-out that received positive customer response to an effortless high-quality experience consistent with the Starbucks brand.

“We are driven to create new and unique digital experiences that are meaningful, valuable and convenient for our customers,” said Roz Brewer, group president and chief operating officer for Starbucks. “Partnering with Uber Eats helps us take another step towards bringing Starbucks to customers wherever they are.”

By partnering with Uber Eats, Starbucks is leveraging the expertise of the largest global delivery service outside of China while extending the potential customer base beyond those who currently include Starbucks as part of their morning or afternoon routines. Through the agreement, the companies will collaborate on innovation and technology integration.

Starbucks and Uber Eats will continue to focus on delivery packaging, in-store operations, and a quick order-to-door delivery window.

“Our customers are huge Starbucks fans and love being able to get their favorite items delivered with Uber Eats speed,” said Jason Droege, vice president of UberEverything. “We’re excited to expand our partnership across the United States to make ordering their favorite coffee and breakfast sandwich as easy as requesting a ride.”

In 2018, the U.S. online food delivery market was estimated to be approximately $17 billion category and is projected to grow to $24 billion by 2023, according to “eServices Report 2019 – Online Food Delivery.”

Over the past decade Starbucks has continued to innovate the retail experience to connect with customers digitally through Starbucks Rewards, the Starbucks Mobile App, and Mobile Order and Pay.

Starbucks Delivers powered by Uber Eats began rolling out in the fall of 2018 through a pilot in Miami and is currently available in 11 U.S. markets. Starbucks will continue to introduce delivery to new markets, achieving national coverage by early 2020.

Starbucks Delivers is available via the Uber Eats mobile app on iOS and Android devices. Customers can follow orders within the mobile app, tracking progress and location of their Uber courier to monitor delivery of their food and beverage items. Starbucks has also developed packaging to help ensure the quality of hot and cold menu items.

With approximately 95% of core menu items available directly from the Starbucks menu, customers will be able to customize their orders just as they would when ordering on Starbucks mobile apps.

CSD Daily, Foodservice, Industry News