Dive Brief:
- Starbucks has partnered with Grubhub to offer delivery in the U.S., the companies said in a press release Thursday.
- Starbucks Delivery with Grubhub will begin this month in select markets in Pennsylvania, Colorado and Illinois, with a nationwide roll out expected in all 50 states by August.
- Grubhub said Starbucks is the most searched merchant on its platform that isn’t yet on Grubhub’s Marketplace.
Dive Insight:
Delivery is a significant growth channel for Starbucks, with ticket and transaction growth in the double-digits in the U.S. during the company’s fiscal Q2 2024. The beverage chain is also working on expanding overnight delivery with an unnamed third-party provider. That business could yield $2 billion in business over the next five years. Starbucks began offering delivery through a partnership with Uber Eats in 2018, later adding DoorDash as a delivery partner in 2023.
“Our new partnership with Grubhub will help fuel [delivery] growth by increasing availability of Starbucks products to Grubhub’s tens of millions of customers, via a leading delivery provider,” said Meg Mathes, vice president of digital experiences at Starbucks, in a statement.
Starbucks will be accessible to order via Grubhub’s app and online, and customers will be able to track their orders from preparation to drop off. The coffee chain has also improved its packaging, developing things like a two-cup to-go tray and improved shopper bags. These will be used for delivery orders to ensure that delivery drivers can easily transport multiple drinks. Most of Starbucks’ menu, including seasonal beverages and food, will be available to order through Grubhub, which will also allow customers to customize their drinks.
Grubhub has also been expanding its reach to garner new customers. It most recently partnered with Amazon to integrate its platform with Amazon’s website and app. Prime customers also will receive Grubhub+, the delivery service’s membership program, for free in perpetuity. Grubhub has also been working with hotels to provide delivery to guests.
