Tech-savvy coffee brand Luckin has reportedly withdrawn a lawsuit against archrival Starbucks, ending a yearlong spat sparked when Luckin accused the U.S. company of “monopolistic practices” in China.
The news, which was reported Thursday by state-owned newspaper Beijing Youth Daily, comes after Luckin reported soaring revenue in the third quarter, up sixfold from a year ago to 1.5 billion yuan ($215.7 million). Luckin declined Caixin’s request for comment.
Last year, Luckin sued Starbucks for allegedly violating Chinese antitrust laws. The rapidly expanding Chinese company complained it had been rejected by several commercial property owners that had signed exclusive cooperation agreements with Starbucks.
At the time, Starbucks dismissed Luckin’s claims as marketing hype.
New York-listed Luckin aims to have 4,500 stores in China by the end of 2019, a figure that would put it ahead of Starbucks’ presence in the country. Its rapid growth owes much to huge product discounts offered to customers as part of what it calls a “money-burning” strategy.
Contact reporter Ding Yi (email@example.com)