Starbucks Seeks Blockchain to Potentially Overtake Chinese Competitor as Luckin Coffee’s Stock Hikes
Dubbed, the “Chinese Starbucks”, Luckin Coffee’s first day of trading resulted in a 20% increase in stock reports BeInCrypto.
This rise has supposedly gotten American Coffee Company, Starbucks’ attention – forcing them to seek new ways to stand out in China.
As per the claims made, Luckin Coffee’s 17.00 rose to $20.38. While this may not seem significant at first, considering that they are new entries within NASDAQ, this is definitely a significant jump. The Chinese coffee firm currently operates 2,400 stores, which is only 800 stores short of how many Starbucks operates.
Although Luckin Coffee’s success does not impact the revenue generated by Starbucks – neither directly nor indirectly – the facts that the China-based coffee company is turning many heads and that they are working towards doubling the number of stores by year-end, are allowing for further growth.
Another news outlet, Fox Business Interview was referenced in this piece, in which CEO Howard Schultz shared that he thinks introducing blockchain technology would be the way to go with Starbucks, primarily for its app.
In a previous Coin Desk reporting, Schultz was quoted making the following remarks:
“I believe that we are heading into a new age, in which blockchain technology is going to provide a significant level of a digital currency that is going to have a consumer application,” adding that the coffee company yearns to “expand digital customer relationships.”
Although the news that Starbucks among others has joined forces with Bakkt was surprising upon announcement, the coffee company will probably only start accepting Bitcoin as payment once they are able to agree upon an “equity deal” with Bakkt.
Do you think the implementation of blockchain technology within Starbucks’ app will help establish themselves in China and potentially overthrow Luckin Coffee? Let us know why or why not in the comments below!