Starbucks Corporation (NASDAQ:SBUX), the world’s largest coffee chain said it would start delivering coffee and food in select markets next year as part of its e-commerce expansion.
Starbucks to introduce Mobile Order and Pay app
During the company’s earnings conference yesterday, Howard Schultz, CEO of Starbucks Corporation (NASDAQ:SBUX) said the company will roll out its new Mobile and Order Pay app in Portland on December. The app will be available nationwide next year.
According to Schultz, the Mobile and Order Pay app integrates seamlessly the mobile and ordering with the proprietary loyalty program, point of sale and store operations of Starbucks Corporation (NASDAQ:SBUX). The app allows the company to improve customer experience and exceed their expectations or convenience thus increasing customer loyalty.
With the Mobile and Order Pay app, customers will be able to place their orders ahead of time and pick up their coffee and food without waiting in line.
Schultz added, “Imagine the ability to create a standing order that Starbucks delivered hot or iced to your desk daily that’s our version of e-commerce on steroids. All this will grow Starbucks Rewards, our loyalty program that now has 8 million active members up 23% over Q4 last year and has been launched in 26 countries.”
Shultz said the food and beverage delivery in select markets would begin in the second half of 2015. Starbucks Corporation (NASDAQ:SBUX) will also improve My Starbucks Rewards program with greater benefits for members next year to further accelerate its membership growth.
Starbucks Corporation (NASDAQ:SBUX) posted a 23% increase in non-GAAP earnings to $0.74 per share and 10% increase in revenue to $4.2 billion for the quarter ended September 28.
The board of directors of the company approved a cash dividend of $0.32 per share and increase of 23%.
For its fiscal 2015, Starbucks Corporation (NASDAQ:SBUX) expected to achieve non-GAAP earnings in the range of $3.08 to $3.13 per share compared with the consensus estimate of $3.16 per share. The company expected to achieve revenue growth of around 16% to 18%.
The shares of Starbucks Corporation (NASDAQ:SBUX) are trading $75.36 per share, down more than 2% at the time of this writing around 3:31 in the afternoon in New York.