By Julie Jargon
Starbucks Corp. is teaming up with ride-sharing service Lyft
Inc. in the coffee giant's newest effort to expand its loyalty
program beyond its cafes.
Under the deal, riders and drivers who use Lyft's mobile app,
which facilitates carpooling, will be able to earn Starbucks
loyalty "stars," which can be redeemed for food and drinks at
Starbucks outlets.
Starbucks didn't disclose the terms of the deal, but said Lyft
purchased "stars" from Starbucks. Details of how Lyft drivers and
passengers will earn rewards are being worked out, with plans to
debut the program later this year.
Expanding the use of the Starbucks points program is a key
growth initiative for Chief Executive Howard Schultz, who hopes it
will both attract new customers and enhance the loyalty of existing
ones. In May, for example, the coffee giant announced plans to team
up with music-streaming service Spotify, whose subscribers will be
able to earn Starbucks stars.
Starbucks also is pressing other digital initiatives to fuel
growth, such as offering customers in several markets the chance to
order and pay for purchases using mobile devices.
That mobile system, now available in 4,000 Starbucks stores,
will be integrated into a delivery program that the company plans
to test later this year. Mr. Schultz said there might be an
opportunity to use Lyft's network of drivers to enable delivery of
Starbucks coffee.
Mr. Schultz said 20% of purchases at Starbucks stores around the
world are now made using a mobile device and that digital
initiatives "have become a driving catalytic engine in our
company."
Lyft drivers will have the option to immediately earn gold
status in Starbucks's loyalty program--a level that can normally
take months to achieve. Lyft drivers also will be able to receive
Starbucks eGifts from customers wishing to thank their driver.
Write to Julie Jargon at julie.jargon@wsj.com
Access Investor Kit for Starbucks Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US8552441094
Subscribe to WSJ: http://online.wsj.com?mod=djnwires