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Home » Starbucks Pairs Up With Alibaba in China to Deliver Coffee

Starbucks Pairs Up With Alibaba in China to Deliver Coffee

Starbucks is pairing up with the e-commerce service Alibaba Group Holding Ltd. to deliver food and beverage products in China, the Wall Street Journal reported. The move comes as Starbucks recorded an earning slowdown in its last quarter.

August 2, 2018
Fortune

The deal with Alibaba’s food-delivery service Ele.me will start in the fall, according to the WSJ’s sources. Though Starbucks didn’t specifically comment on Ele.me, the company previously said it was planning to work with a partner for delivery in China.

“We start this fall in Beijing and Shanghai, with plans to expand across the country as we enter calendar 2019,” said Belinda Wong, the chief executive of Starbucks China.

In its financial results for the third quarter, which ended on July 1, Starbucks reported a 2-percent decline in comparable store sales in China.

“The problem is Starbucks is no longer viewed as an aspirational brand,” said Shaun Rein, the managing director of China Market Research Group, according to the Wall Street Journal.

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KEYWORDS Business Strategy Alignment China E-Commerce/Omni-Channel Express/Small Shipments Food and Beverage Global Supply Chain Management Logistics Logistics Outsourcing Retail Transportation & Distribution
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