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Luckin Coffee canceled the free delivery offer

According to Luckin Coffee APP, they canceled the previous free delivery offer. From now on, users in different regions will have to pay different prices for delivery. 

The delivery fee in Guangzhou is 6 yuan (about US $1). If the total price of the order exceeds 55 yuan, the freight will be discounted by 3 yuan. Previously, it can be delivered free of charge if the consumption exceeds 55 yuan. 

In fact, not only Guangzhou but also Luckin delivery costs in other cities have increased to varying degrees. Among them, Beijing, Shanghai, Xiamen, Baoding, and other cities are the same as Guangzhou, the delivery fee is also 6 yuan, 55 yuan minus 3 yuan, while Changsha, Foshan, and other cities can discount 3 yuan if the order price exceeds 35 yuan. 

It is reported that the delivery service provider of, Luckin Coffe is SFExpress. The shipping cost of each delivery order is 14 yuan. This means that Luckin Coffe’s previous free delivery offer made the company bear the main delivery costs.

But the effect of this free distribution discount is obvious, as the price of a cup of coffee in Luckin is about 10 yuan. So an order of 55 yuan means about five cups of coffee, which significantly promotes group buying among office staff and boosts coffee sales. Coffee sales are likely to decline slightly after the free delivery offer is canceled.

Luckin, a Chinese coffee chain, admitted in April that it had faked its finances in 2019. Nevertheless, its growth in the Chinese market has not stagnated. The company revealed at an internal meeting that they will arrive at the single store Break Even Point next year.

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Panda!Yoo is not a professional financial media. 
You are reading an article about Chinese companies listed overseas. The original intention of our report is to show the consumption trend in China. We quote the comments on the company and its products in the Chinese media, which are not financial advice. You should never use this article as key information for investment decisions.

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