Challenging Starbucks
For years and years and years, Starbucks has dominated the mass-market market for specialty coffee, mocha, frapp, tea, etc.
Sure, there are gas stations, local coffee shops, and fast-food joints like McD's that have cut into the market a little bit.
But overall..... Starbucks is king.
However, there is an emerging challenger to the throne:
China’s upstart coffee brand, Luckin, has an audacious plan: convince China to switch from tea to coffee, overtaking Starbucks while they’re at it. It’s an expensive proposition, so they’re relying on an IPO — and a Silicon Valley mindset.
Founded in 2017 by CEO Jenny Qian, the former COO of Uber-rival UCAR, Luckin is the pioneer of a web-centric business model that has facilitated the company’s rapid expansion. Customers order coffee online and pay through mobile wallets, such as WeChat Pay or Alipay. Couriers then rush the coffee to wherever the customer is, or the customer can collect their joe to-go from a nearby Luckin location.
How far can Luckin creep into Starbucks' domination?
Time will tell.
(NOTE: I am not a coffee drinker. To me, most everything Starbucks sells is gross.)
Grace & Peace & Love to you all -
Matt
