Tata Starbucks pilots direct delivery service via mobile app in Mumbai

Coffee giant Tata Starbucks has rolled out direct delivery services in Mumbai, making a shift in its delivery strategy, according to CNBC-TV18 Exclusive. The service, which is currently in a pilot phase, is available via the Starbucks mobile app and limited to select areas of Mumbai.

The service covers 10 stores located in the suburbs of Andheri West, Andheri East, Vile Parle East, and Juhu.

Customers can now choose a store based on their location, and that specific outlet will fulfil their order. While Tata Starbucks has not yet commented on the direct delivery initiative, the app now lists delivery options for these regions.

Orders placed through the Starbucks app come with a delivery fee of up to Rs 100 for orders below Rs 500, and a packaging fee of Rs 19. The maximum order value is capped at Rs 4,000.

Previously, Tata Starbucks partnered with food delivery platforms Swiggy and Zomato for delivery services. However, in 2020, the company introduced an 'order and pay ahead' feature in its app, which allowed customers to collect their orders from nearby stores. This new direct delivery feature puts Tata Starbucks in line with other quick service restaurants such as Domino's Pizza and McDonald's, which also handle their own deliveries when orders are placed via third-party apps.

As of Q1 FY25, Starbucks operates 438 stores across 65 cities in India and reported a 4% growth in revenue for the quarter.

The direct delivery service could potentially expand to more areas if the Mumbai pilot proves successful.