Tap and Sip: Starbucks Partners with Lyft on Loyalty Program

To attract new customers and strengthen the loyalty of existing patrons beyond its coffeehouses, Starbucks Corp. is teaming up with ride-sharing service Lyft Inc.   Under the agreement, customers who use Lyft’s mobile app will earn loyalty “stars,” redeemable for food and drinks at Starbucks outlets.  Lyft drivers can also receive loyalty stars through the partnership. They even have the option to earn immediately a gold status, which normally takes several months to achieve, in the coffee giant’s loyalty program.  They can also receive loyalty stars via tips from riders.


“Our digital loyalty ecosystem will strengthen Lyft’s ability to attract and retain customers in a highly profitable way, while at the same time accelerating the incrementality of redemption of rewards,” Adam Brotman, chief digital officer of Starbucks, said in a statement.  Starbucks didn’t disclose the details of the multiyear agreement with Lyft, which is expected to commence later this year.

Image source: telegraph.co.uk

The pairing is the newest addition to Starbucks’ lineup of corporate partnerships that focus on its customer loyalty program.  Earlier this year, it forged a partnership with streaming music company Spotify.  Starbuck customers can earn loyalty stars by signing up for Spotify Premium, which can also give them a chance to influence in-store playlists.  Another recently announced arrangement is with The New York Times.  Currently, Starbucks patrons get free access to 15 NYT articles when using the company’s mobile app.  By 2016, however, Starbucks mobile app users can access top news of the day and more timely articles for free.

Image source: thedrum.com

Also central to Starbucks’ recent wave of tie-ups is its mobile system.  The Seattle-based coffeehouse chain is keen on beefing up its digital strategy and is working on making it easier for customers to order and pay for their purchases using their smartphones and other mobile devices.  Chief executive Howard Schultz revealed that 20 percent of Starbucks purchases worldwide were made using a mobile device.

Of Recovery and New Job Opportunities: Taking Advantage of the Economic Rebound

The economy may appear to be in the same shabby state as it had been since the start of the recession in the late 2000s, but appearances can be deceiving. Closer observation of current trends suggests that the worst of the economic storm has indeed passed, due in no small part to a rapid and widespread restructuring of the U.S. economy and gradual demographic and social shifts.

 Image source: mauryk2.com

The recession saw an end to the abuses that led to the housing bubble, while the slow but steady recovery of real estate and manufacturing were met with a resurgence of low energy costs and the increased spending power of the American buyer. In the previous year alone, job creation in the country reached a 6-year high. Moreover, lower crime rates have relieved some of the economic burdens from citizens, fostering more resilient urban economies in the process.

The U.S. economy's recovery is also frequently seen as the most sustainable, capable of keeping up growth expectations in the near future. However, the country's not out of the woods yet. While the real estate markets are recovering, the average potential homebuyer has not. The growing economic divides between rich and poor make the targeted economic growth goals all the more difficult to reach. More needs to be done to bridge this gap.

 Image source: crestcommercialrealestate.com

The economic climate has been extremely kind to startups and newer industries, which are leading the hiring boom as their insatiable appetite for talent propels them forward. With job demands at a robust high, the job market has become more and more competitive. Startups and other smaller businesses would need to step up their game to attract the same talent that other larger corporations are also vying for.

While it's too early to be overly confident with this new, more robust economy, there are plenty of reasons to be cautiously optimistic.