Luckin Coffee’s asset light expansion tactic – self-service machine

A contributing reason of the Luckin’s popularity in China is that the coffee has been sold comparatively cheaper than its competitors, especially Starbucks and Costa. Now, it’s coming up with a new idea to even lower the price, by introducing self-service coffee machine. The new business unit is named “Luckin Coffee Express”, aiming at delivering affordable coffee in 30 seconds after the payment is made. Confronting the loss that is striking the company, Luckin Coffee adopts the asset light expansion strategy, in hope to reverse the current loss-making situation.