Starbucks eyes Lyft as way to ease worker commutes

Aamer Madhani | USA TODAY

Starbucks announced on Wednesday that it will soon partner with the rideshare service Lyft to experiment with providing transportation for the coffee company’s workers in a market with unreliable public transportation.

Starbucks chief digital officer Adam Brotman said the effort stems from managers seeing that reliable transportation had become a real obstacle for workers in some markets, particularly those who work early and late shifts. Brotman said that Starbucks official have identified "one or two" cities that they think would be ideal for the pilot but don't plan on launching the experiment until later this year.

"This is really a learning experiment, but one that both companies are going into with high hopes," Brotman said in a call with reporters.

The company announced the framework for the transportation pilot as it launched a multi-year deal with the San Francisco-based rideshare service on Wednesday in which Lyft riders can earn reward points, or what the coffee company refers to as Stars, in Starbucks loyalty program for fare purchases with Lyft.

The rewards points can be used to purchase food and beverages at Starbucks. Starbucks has recently announced similar partnerships with Spotify and The New York Times.

Like Spotify and The Times, Lyft will purchase the reward points from Starbucks that they will give to their customers for Lyft purchases. Company officials declined to provide further details on the financial arrangement

In addition, Starbucks announced that users of Lyft’s app will soon be able to give their drivers’ Starbucks eGifts in addition to a tip to show their appreciation.The rideshare service is available in 65 cities.

John Zimmer, co-founder and president of the San Francisco-based Lyft, predicted the partnership will help build the growing company's brand.

“Lyft and Starbucks share a lot of the same customers and importantly we share a commitment to doing right by our customers and our people," Zimmer said.

Starbucks has been active in boosting its mobile presence. Last month, the chain announced that customers at more than 4,000 locations can order and pay for their beverages ahead of time through its new mobile ordering app.

Starbucks CEO Howard Schultz suggested that the partnership with Lyft could eventually evolve into one where drivers for the rideshare service deliver Starbucks food and beverages.

"The mobile order and pay system that is now in 4,000 stores and doing very, very well is going to be integrated into a delivery system," Schultz said. "Certainly, given Lyft's core business, the opportunity to integrate delivery with Lyft certainly exists."