Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

Luckin Withdraws Lawsuit Against Starbucks As Sales Surge

By Ding Yi / Nov 15, 2019 01:30 PM / Business & Tech

Photo: VCG

Photo: VCG

Tech-savvy coffee brand Luckin has reportedly withdrawn a lawsuit against archrival Starbucks, ending a yearlong spat sparked when Luckin accused the U.S. company of “monopolistic practices” in China.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 (yiding@caixin.com)

Related: As Revenue Surges Sixfold, Luckin Loses Even More Money

Share this article
Open WeChat and scan the QR code