November 12, 2014
Starbucks will launch a new app in the U.S. by the second half of next year aimed at its loyalty program members. The app will not only let you order and pay but will also trigger an additional service of having your beverage and food delivered to your location. Previously, Starbucks had announced the release of a new mobile ordering and payment app that would enable users to place their orders ahead of time and skip waiting in the lines slowed down by walk-ins.
There is no clarification on the ‘select markets’ where the delivery service would be launched. Starbucks also hasn’t cited yet whether they have a long term plan to roll out the new service globally. Starbucks’ mobile app will become unique with the ability to integrate mobile ordering in the company’s loyalty program and physical store operations as well. This would further act as a powerful customer loyalty enhancer.
Mobile payments in the U.S are expected to grow to $90 Bn by 2017 from around $13 Bn in 2012, according to forecasts from Forrester. Since introducing mobile payment features in 2011, Starbucks has seen mobile payments increasing to 14% of its in-store transactions in the U.S., up from more than 11% in January 2014, said the company.
Almost 10 Mn consumers utilize the Starbucks mobile payments app to pay for their coffee, croissants and those blueberry chocolate balls. According to the company, they amount to a whopping 5 Million mobile payments every week. A majority of its more than 8 Mn loyalty reward customers also use its payment apps. One could be skeptical whether Starbucks can really establish a scalable delivery network to cater to its customers despite such a large current user base.
Starbucks has been known for proactively embracing cashless payment methods. The company had teamed up with Square a few years ago to enable mobile payments processing. Its mobile payment app is already well known for enabling users to pay by scanning the bar code tied to the account in the app. With the recent developments, bringing in the preorder feature and the proposed delivery service right into the app, Starbucks is all set to further disrupt the QSR space and the mobile payments space as well.