Starbucks Heats Up Delivery Wars: Grubhub Partnership Promises Exclusive Perks For Coffee Lovers

Starbucks Corporation SBUX shares are trading higher on Thursday.

Today, the company and Grubhub announced a partnership to bring Grubhub delivery to Starbucks customers in the U.S. The company announced that through Grubhub’s monthly membership program, customers can enjoy zero delivery charges, reduced service fees, and exclusive offers when purchasing its drinks.

Starbucks also has partnerships with Uber Eats and Postmates, the food delivery arms of Uber Technologies, Inc. UBER, Reuters reported.

Starbucks delivery has been available on DoorDash, Inc. DASH in the U.S. since 2023.

In a press release, the coffee chain giant said Starbucks is the most searched merchant not yet available on Grubhub’s Marketplace.

“Customer demand to get Starbucks delivered continues to increase, as evidenced by double-digit growth in the U.S. delivery business this past quarter, indicating that our customers continue to want convenience in their everyday lives,” said Meg Mathes, vice president of digital experiences at Starbucks. 

Beginning in June, Starbucks delivery with Grubhub will roll out to select markets in Pennsylvania, Colorado, and Illinois.

National availability is anticipated in all 50 states across the U.S. by August 2024. 

“We’re proud to offer national and independent restaurants “We’replatform — a complementary duo — to give customers more choices and build loyalty,” said Liz Bosone, VP of enterprise partnerships at Grubhub.

The positive development comes when the company’s baristas are facing an increasing problem with rapid drink orders but fewer staff to fulfill them.

Related: Starbucks Plagued With Long Wait Times, Staffing Issues: Report

In some locations, where five people previously made iced macchiatos and double-shot espressos, there are now only three or four workers, according to a recent report from Bloomberg.

This staffing reduction, employees say, is partly due to an algorithm used by Starbucks to manage store labor. The company utilizes an algorithm that considers various factors like order forecasts and product availability to suggest staffing levels.

Price Action: SBUX shares are trading higher by 1% year over year to $81.98 at last check Thursday.

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