Luckin Coffee Inc., a China-based company that has quickly become a key competitor to Starbucks Corp. in that country, has filed paperwork to go public.
Luckin Coffee Inc., a China-based company that has quickly become a key competitor to Starbucks Corp. in that country, has filed the paperwork for an initial public offering.
Though it has three kinds of stores, 91.3% of them are “pick-up stores” that offer limited seating and are located in places like office buildings and university campuses that have built-in demand. The remainder are “relax stores” and delivery kitchens.Technology is key for the company, which Luckin says it uses to standardize its operations and, through the use of AI, to analyze customer behavior to better select products and services.
Among the risk factors Luckin Coffee lists are the limits to protecting shareholders under the laws of the Cayman Islands, which the company said “are not as clearly established” as those in some U.S. jurisdictions. It is operating in a highly competitive market Luckin Coffee is facing fast growing competition in its marketplace, including from global powerhouse Starbucks Corp. SBUX, +0.75% which has set its sights on China. Starbucks has stated its goal of adding 600 net new stores annually to reach 6,000 locations by fiscal 2022. Starbucks has partnered with Alibaba for delivery service in 2,100 stores in 35 cities. And it has launched its popular loyalty program, which has accumulated 8.
Luckin says it also expects to compete against convenience stores and other businesses, which could hurt its market share.Business could be disrupted by some unusual red tape Under Chinese law, lease agreements have to be registered with a local land and real estate administration bureau. Failure to do so could invalidate the lease or lead to fines.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Starbucks recalls Bodum coffee press after reports of lacerationsStarbucks recalled a coffee press after receiving reports that people had suffered lacerations or puncture wounds when the top knob broke off.
Read more »
Starbucks Launches Recall of Bodum Coffee Presses After Injury ReportsStarbucks is voluntarily recalling a coffee press it sold for more than two years after receiving reports about it breaking during use, causing cuts and puncture wounds.
Read more »
Starbucks is recalling 263,000 coffee presses after reports of them breaking and causing deep cutsStarbucks Corp is recalling about 263,000 of its coffee presses after receiving reports of the product breaking and causing deep cuts.
Read more »
Starbucks recalls coffee presses because of laceration hazardStarbucks Corp is recalling about 263,000 of its coffee presses, made in partner...
Read more »
Investor group demands changes to Uber's board ahead of IPOInvestor group CtW called for the removal of John Thain from Uber's board and said the board's composition 'falls short of best practices.'
Read more »
Uber and Lyft drivers plan to strike and rally ahead of Uber's IPORideshare drivers are planning to strike and rally again — this time, ahead of Uber's impending IPO
Read more »
Ride-hailing drivers in New York to strike ahead of Uber IPOUber Technologies Inc's drivers in New York will go on strike next week sho...
Read more »
Cramer's week ahead: A red-hot market, and Uber's IPO'We've got a runaway freight train of a market and I'd love to see the darned thing cool off for more than a session or two,' the host said.
Read more »
Uber is 'totally different' to Lyft, major investor Saudi Arabia says ahead of IPOSaudi Arabia's sovereign wealth fund says Uber is 'totally different' to Lyft despite investor concerns over profitability.
Read more »
Profits in Uber's core ride-hailing an 'Everest uphill battle,' warns analyst ahead of the IPOInstead, Wedbush's Dan Ives expects growth will come from other services like Uber Eats food delivery and Uber Freight shipping.
Read more »