Starbucks and Grubhub have announced a new partnership, enabling customers to order Starbucks delivery through the Grubhub app for the first time. This new service will debut in select markets across Pennsylvania, Colorado, and Illinois in June and expand nationwide by August.
“Customer demand for Starbucks delivery continues to grow, as demonstrated by double-digit growth in our U.S. delivery business last quarter. This indicates our customers’ desire for convenience in their daily lives,” stated Meg Mathes, Starbucks’ Vice President of Digital Experiences. “Our partnership with Grubhub will fuel this growth by making Starbucks products accessible to Grubhub’s millions of customers through a leading delivery provider.”
Grubhub noted that Starbucks is the most searched merchant on its app that isn’t yet available. While Starbucks has been slower than other top food service chains to embrace third-party delivery, it began offering delivery through Uber Eats in 2018 and expanded nationally by 2020. The company started delivering with DoorDash in January and rolled out nationwide by March 2023.
According to Bloomberg Second Measure, Grubhub is the last of the “big three” delivery companies to partner with Starbucks. However, it has the smallest market share at 8%, compared to DoorDash’s 67% and Uber Eats’ 23%.
“Partnering with a beloved national brand like Starbucks allows us to offer customers more of what they want on Grubhub while enhancing our enterprise offerings and expanding our merchant network nationwide,” said Liz Bosone, Grubhub’s Vice President of Enterprise Partnerships. “We’re proud to offer a mix of national and independent restaurants on our platform to provide customers with more choices and build loyalty.”
This partnership aligns with the increasing popularity of delivery among Starbucks customers. CEO Laxman Narasimhan reported an 80% year-over-year growth in the delivery business, primarily due to the DoorDash partnership. However, delivery still represents only 2% of orders, indicating significant growth potential. In January, Starbucks announced a delivery partnership with startup GoPuff to meet the demand for late-night and overnight deliveries.
The Grubhub partnership could help address some of Starbucks’ current challenges in meeting demand. The company recently reported declining same-store sales for the first time in three years. Narasimhan emphasized that, in addition to improving store efficiencies, Starbucks will continue to digitize its stores. The collaboration with Grubhub is a step toward enhancing digital engagement and expanding omnichannel flexibility.
