Starbucks testing mobile ordering system


Starbucks (SBUX +0.7%) will allow customers to pick up orders set up through its mobile app sometime this year.

The company has been testing the concept at a store in Seattle to work out the obvious issues associated with hot drink orders.

The Starbucks mobile app has one of the highest engagement rates in the retail sector.

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Comments (7)
  • twm3823
    , contributor
    Comments (307) | Send Message
     
    help me out...I understand the mobile app will make it more convenient for customers, and therefore more likely that they'll purchase items more often, but does SBUX make any money from the use of the app itself?
    18 Jul 2014, 12:03 PM Reply Like
  • Brice Mckalip
    , contributor
    Comments (198) | Send Message
     
    Reduces cost by eliminating some credit card transactions and the fees that come with. Personally, I reload in $100 increments while buying $2.70 frappuccinos and so have 97% fewer swipes.

     

    Clearly it's mainly an engagement play but making transactions just a little cheaper and faster matters a lot when you've be <$5 transactions.
    18 Jul 2014, 05:24 PM Reply Like
  • Ryan Van Zeeland
    , contributor
    Comments (11) | Send Message
     
    I don't know, but there has been talk about potentially licensing the technology if is successful.
    18 Jul 2014, 12:37 PM Reply Like
  • smcgibbon
    , contributor
    Comments (83) | Send Message
     
    licensing has huge potential IMO
    18 Jul 2014, 12:41 PM Reply Like
  • Bret Kenwell
    , contributor
    Comments (970) | Send Message
     
    I may be wrong about what SBUX is doing, but PNRA has a similar online ordering app. I believe NDLS does too. I think, unless SBUX has something extremely proprietary about its own, will have trouble licensing the platform. Just my thoughts
    18 Jul 2014, 01:04 PM Reply Like
  • Bbloomlu
    , contributor
    Comments (312) | Send Message
     
    Traveling around Florida I see little use of app except in the business districts of the major cities. The suburban sites I visit for the most part are meet and sit rather than grab and go.
    18 Jul 2014, 01:19 PM Reply Like
  • piesco
    , contributor
    Comment (1) | Send Message
     
    The updated mobile app is a complete disaster. Check out the reviews in the App Store for a good laugh - or cry. If Starbucks expects to have a successful new initiative with this app, they had better fix the app first.
    18 Jul 2014, 04:11 PM Reply Like
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