Luckin Coffee is a startup coffee retailer in China that is now being valued at $1 billion. Having been founded in October of 2017, Luckin Coffee now has 525 outlets across major cities in China. One key aspect of this startup is that it focuses heavily on delivery. 231 of these outlets are just kitchens that are dedicated to delivery. Also, they focus heavily on smartphones. In some of their stores, all customers must download the app and can only pay through their own form of payment called “coffee wallet”, or WeChat. They are also dominating on the marketing scene with traditional style marketing, which Starbucks does not use. Luckin has its name plastered all over cities in China using celebrity endorsements. Not only that, their prices are also lower than Starbucks, which has been a key factor in their growth. Even though delivery is such and important part of their success, they believe that brick-and-mortar is the key, and they believe that delivery outlets will only make up 15% of their stores in the future. Luckin Coffee clearly paces a huge important on technology and the future of smartphone applications. This is a big trend in China and is allowing them to give Starbucks a run for their money. It will be interesting to see how this plays out in the Chinese coffee market and if Luckin tries to ever go international.