Starbucks Corp. is making another move to stay ahead of mobile commerce innovation, as the coffee chain announced this week a new initiative it’s calling Mobile Order and Pay it plans to test in December and roll out in all of the U.S. in late 2015. The new service will allow a customer to purchase coffee on her mobile devices, and pick it up once in the store without waiting in line.

Starbucks also says it will test the delivery of food and beverages in select markets during the second half of 2015.

Mobile Order and Pay is the latest in a slew of mobile-focused initiatives Starbucks has rolled out in recent months, including the launch of a new Android app with Shake to Pay functionality in the U.S., United Kingdom and Canada. This allows in-store customers to bring up the barcode of their Starbucks card on their smartphone by physically shaking the device.

Shoppers can also now tip baristas on their mobile devices when at the counter, and the Starbucks Apple Inc. iOS app is integrated with ride sharing and taxi service Uber, so customers can order a ride to their nearest Starbucks location.

These initiatives are aimed at positioning Starbucks to benefit from the shift in consumer behavior that has people spending less time shopping in bricks-and-mortar stores and more time online, CEO Howard Shultz told analysts in a year-end conference call.

“We continue to see consumers favor retailers who improve their customer experience through the integration of convenient mobile technology,” Schultz said. “And while Starbucks is today an uncontested leader in mobile, we will continue to innovate and lead around all things mobile in order to attract additional users of our app and provide an enhanced and simplified experience for our customers. Innovations that will drive traffic and incrementality create further attachment and customer engagement.”

In preparation for the holiday season, Starbucks says it plans to encourage customers to purchase gift cards via online social networks. It’s also planning to expand the number of products offered on its e-commerce site, though executives did not provide further details.

For the fiscal year ended Oct. 30, Starbucks, No. 444 in the Internet Retailer Top 500 Guide, posted:

• Net revenue of $16.45 billion, a 10.6% increase compared with $14.87 billion in fiscal 2013.
• Comparable store sales increased 6%.

Starbucks does not report online sales in its quarterly earnings. Starbucks’ 2013 online sales totaled an Internet Retailer estimated $27.77 million.

 

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