tarbucks is teaming up with Ele.me to deliver their products in China this fall, reported the Wall Street Journal on Monday.
The Seattle-based coffee company is set to announce its partnership with Alibaba’s food delivery platform sometime this week, after stating it was looking at new delivery options starting the fiscal year 2019 in an earnings call last week.
“Let me assure you that our new delivery service will adhere to the high standards our customers in China have come to expect…as we expand our business [there],” CNBC reported Starbucks China CEO Belinda Wong saying during the call.
In the call, Starbucks reported record fiscal third-quarter revenue and profit exceeding Wall Street estimates, and China has been driving the company’s recent growth.
But same-store sales in the mainland fell 2 percent during last quarter, compared with increases of 4 and 6 percent in the prior two periods.
At the same time, the company is being challenged by local brand Luckin Coffee, who is aiming to have more stores than Starbucks in China eventually. Luckin currently has over 660 branches, compared to Starbucks’ 3,400 outlets.