PYMNTS-MonitorEdge-May-2024

Starbucks Delivery Fee More Than The Cuppa Joe It Delivers

The concept of free delivery is becoming the norm in the retail world. But that’s not the case for Starbucks’ new delivery model.

The coffee company started offering delivery in select Seattle neighborhoods yesterday (Dec. 2), but it’s anything but free. In fact, the $5.99 delivery fee (plus tip) will set back the consumer more than pretty much all of the fancy lattes on the menu.

This indicates that this model isn’t designed for the regular Starbucks consumer who has a cup or so a day. But it could likely be an option that offices look into or perhaps a group of people looking to get their daily caffeine fix without having to step foot in a store.

Starbucks delivery is coming to consumers with the help of Postmates, which has partnered with the company to deliver in the Downtown, South Lake Union, Capitol Hill, Madison Park and SoDo neighborhoods of Seattle. And for those who sit outside Starbucks’ target delivery zones, Postmates offers delivery through its own app. Those customers, however, can’t count the drinks toward the My Starbucks Rewards loyalty program. In general, Postmates charges at least $5 per delivery, plus a service fee.

In October, Starbucks announced that it was launching a pilot program for its coffee and food delivery service, Green Apron. Though the service has a limited eligibility range (customers must be located within New York City’s Empire State Building), Cliff Burrows, Starbucks group president of the U.S. and the Americas, believes Starbucks launched its newest service in a veritable crucible of coffee culture.

Under the Green Apron banner, orders are made and delivered within a 30-minute window, and with mobile ordering and payment through Starbucks’ mobile app, customers can get a cup of joe without getting up from their desks or reaching for their wallets or purses. Each order is subject to a $2 delivery fee, but customers can even specify where they’d like their orders dropped off — at their desks, at reception or in a conference room.

PYMNTS-MonitorEdge-May-2024