Starbucks signs a joint partnership with Meituan to increase its market share in China
Starbucks announced that it has joined forces with Meituan to access the popular food delivery app to roll out new offerings for customers in China. Meituan is dominant food delivery firm in China where Starbucks has its second biggest market. With such accessibility, Starbucks would be able to manage consumers in mainland China who want to place orders on Meituan's platform, which has more than 667 million active users.
Starbucks plans also to create for each of its roughly 5,000 China stores on Meituan's platform by the end of the year, where users will be able to check out local events and see photos and videos from baristas of each location. This move comes as competition in the Chinese coffee market is escalating where Starbucks first begun food delivery services in the country in 2018 through an exclusive partnership with Alibaba Group's which is Meituan's main rival.
Starbucks' business in China has been affected by the Corvid 19 outbreak in the country that forced it to close stores in several major cities.
Major competition from powerful global players from Italy, Lavazza, backed by restaurant chain Yum China, and Canada's Tim Horton, which have been expanding in China is weakening Starbucks’ position in the country. China is an important market forStarbucks with more than 65,000 employed across nearly 210 cities. According to its recent report, It earned $964 million in the three months ended October.