Starbucks a coffee house chain will launch its mobile payment and loyalty app in India, also plans to open 100 stores by the end of 2016 in India. The app will detect the location of users and suggest the closest stores. Users can also order and pay through the app. Rewards points will be added via app & users have to carry the card everytime they make purchase through the stores, but with the help of the app the points will be directly added to my account without carrying the card everywhere, points can be later be used for free drinks.
Sumitro Ghosh CEO at Tata Starbucks said
“We plan to launch this year. Basically, the platform will allow you to make payments from your phone and allow you to participate in the My Starbucks Rewards program through your phone. It will let consumers know about menu options and store locations and instead of pulling out their Starbucks (loyalty) physical card, they can generate it on their mobile phones and pay. We first plan to get this going and then move to a mobile ordering system as exists in the US and some other markets. The mobile ordering platform is part of our long-term plan for India.”
Starbucks started their operation in India in 2012 by forming a joint venture with Tata Global Beverages, initially they opened their stores in New Delhi and Mumbai. Presently it has opened 80 stores all over India. In 2014 it had revenue of Rs 95 crore and by 2015 there was a 80% hike in the revenue with Rs 171.2 crore.
The app was first launched in US, and since it has been launched in other countries as well. The app is available on both Android and iOS platform. It allows the user to pre-order before they reach to the store which allows them to jump queues. Mobile wallet users have captured 70% of market share with 135 million users in India with Paytm, PayU, Oxigen, My Mobile Payments and Mobikwik.