Seeking Alpha

Coffee subscription model launches in NYC

  • A new coffee service app from an Israeli start-up did a soft launch in New York City with positive early results.
  • The $45-per-month Cup service gives subscribers unlimited purchases of basic coffee and tea drinks at the 40 participating independent shops. A premium service at $85 per month opens the door for premium espresso and latte drinks.
  • Both Starbucks (SBUX -0.4%) and Dunkin' Brands (DNKN -0.6%) have 10X the number of locations that Cup has under its fold so far.
  • The firm's goal is to expand out of NYC in the future.
From other sites
Comments (4)
  • buyandhold???
    , contributor
    Comments (907) | Send Message
     
    This will get a $10B valuation soon if goldman sachs gets its hands on it
    11 Jun 2014, 02:17 PM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1210) | Send Message
     
    I don't get the point. Why would that be better than buying your coffee?
    11 Jun 2014, 02:54 PM Reply Like
  • King Rat
    , contributor
    Comments (879) | Send Message
     
    The most likely loyal customers would be college students who would just Bogart a table but now buy hourly coffees and stay even longer.

     

    As a potential customer, I'd rather pay via a 3% cash back contactless payment card than a subscription I likely wouldn't fully use or get cash back on. Let's just be honest.

     

    Honestly back at the office it is faster and more enjoyable to make a fresh brew in a nice briki. Since each round is good for 2-4 cups there's always enough to share with coworkers. A $10 12.oz bag lasts about 20 rounds, 60 cups, so why even go to a coffee shop at all unless you have to?
    I pay $10/month for my coffee, the office smells great, and a few coworkers get coffee for free off me. Every few days I get a couple hours off to brew for the bosses' VIPs and have a cup with them. More than pays for itself in a week. Best tip for easy promotion ever would be to get a briki and learn how to use it. Cheers!
    11 Jun 2014, 02:58 PM Reply Like
  • civ-e
    , contributor
    Comments (417) | Send Message
     
    do the 40 independent stores comingle their earnings somehow? there's bound to be a more popular store among the that will see a huge number of subscribers coming in for unlimited espressos. also seems prone to abuse where a subscriber can get free coffee for his whole group of buddies.
    11 Jun 2014, 11:16 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs