The Big Tech Team-up between Starbucks and Amazon Go

On Nov 18^th, the new concept store of Starbucks Pickup with Amazon Go was launched in New York City at 59th Street between Park & Lexington Avenue.

This store, just like its name, offers Starbucks Pickup service and Amazon Go’s Just Walk Out shopping experience. Furthermore, an evolved café lounge is also in this package deal, which includes individual workspaces and tables with power outlets and USB ports.

How does it work?

Customers can pre-order their coffee in the Starbucks app like usual. When they arrive at the store, there is a status board at the entrance with customer’s name on it. You can just grab your coffee on the counter when it is ready.

To enter the Amazon Go area, you can scan your “In-store Code” in your Amazon app. The rest is like all the other Amazon Go stores. Anything you take from the shelf will be added to your virtual cart. Anything you put back to the shelf will be deleted from it. It is powered by Amazon’s Just Walk Out Cashierless technology. Every move from the customer is captured by the cameras and analyzed by the AI.

You can choose to relax in the lounge area with your food or just simply walk out if in a hurry.

The full Starbucks menu is offered. A curated selection of food and beverages can be purchased in the Amazon Go market. Not only the usual salads, sandwiches and bakery item are available for purchase, but also choices from local kitchens are in stock.

Why the Cashierless Team-up now?

With this collaboration, both Starbucks and Amazon Go benefit from each other’s customer base. There is a fair share of customers, who are happy with Starbucks’ coffees and unsatisfied with the food choice. On the other hand, the customers who grab their breakfast or lunch in the Amazon Go might as well crave for a cup of fresh Starbucks coffee. Not to mention the Cashierless experience avoids the waiting in line at the tills. It is crucial for people with time concerns during their break. This alliance means to fill that market share.

Caused by the pandemic, Starbucks suffered a sharp drop in revenue and planned to open more pickup locations and drive through lanes. This new concept store with Amazon Go will surely draw more customer attention.

Meanwhile, Amazon has been expanding its Cashierless technology in the last several years. Starting from opening its own Amazon Go stores, Amazon has licensed its Just Walk Out technology to many supermarket brands in U.S., Canada, and some European countries. Now the cooperation with Starbucks is just another step to make Amazon prevalent.

As announced, two more Starbucks pickup with Amazon Go are expected to be opened in New York. If the expansion works well, possibly there will be a new name for the store. So far, the concept store still requires two separate apps to enjoy the full service. An integrated app in the future is also foreseeable. Maybe the next store will open right in your neighborhood.