Starbucks Heats Up Delivery Wars: Grubhub Partnership Promises Exclusive Perks For Coffee Lovers
Portfolio Pulse from Nabaparna Bhattacharya
Starbucks Corporation (NASDAQ:SBUX) has announced a new partnership with Grubhub to offer delivery services to its customers in the U.S. This partnership promises zero delivery charges, reduced service fees, and exclusive offers through Grubhub's monthly membership program. Starbucks already has delivery partnerships with Uber Eats, Postmates, and DoorDash. The new service will begin in select markets in June and is expected to be available nationwide by August 2024. Despite the positive news, Starbucks is facing staffing issues, which may impact service quality.

June 06, 2024 | 3:23 pm
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NEGATIVE IMPACT
Starbucks' partnership with Grubhub may affect DoorDash's delivery business as customers might prefer Grubhub for the exclusive perks offered.
The exclusive perks offered through the Grubhub partnership may attract Starbucks customers away from DoorDash, potentially reducing DoorDash's delivery volumes for Starbucks products.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Starbucks' new partnership with Grubhub adds competition to Uber Eats and Postmates, which already deliver Starbucks products. This could impact Uber's delivery business.
The new partnership with Grubhub introduces additional competition for Uber Eats and Postmates, potentially impacting Uber's delivery business negatively as customers may shift to Grubhub for the exclusive perks.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Starbucks' new partnership with Grubhub is expected to boost delivery sales by offering exclusive perks to customers. However, ongoing staffing issues may affect service quality.
The partnership with Grubhub is likely to increase Starbucks' delivery sales due to the exclusive perks offered. However, the ongoing staffing issues could negatively impact the quality of service, which may offset some of the positive effects.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100