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September 23, 2009 5:00 AM PDT

Future of mobile commerce, in a skinny vanilla latte?

by Caroline McCarthy
  • 7 comments

Your decaf caramel macchiatos and no-whip pumpkin spice lattes are going mobile.

In a double-shot launch (sorry), coffee giant Starbucks unveiled late Tuesday its first two iPhone apps. The first one, called MyStarbucks, is a no-brainer: you can use the phone's GPS capability to find nearby stores (previously, this was available via text message), search ingredient and calorie information for Starbucks beverages, study coffee bean varieties, and build virtual drinks to see what exactly would be in one if you ordered it.

But it's the second app, called Starbucks Card Mobile, that could be worth a double-take. The app allows for balance check and refilling of Starbucks gift cards, which the company has expanded into a customer loyalty program by offering discounts, free refills, and two hours of free Wi-Fi to cardholders. And in two experimental test markets, the Starbucks Card Mobile application can use a barcode to replace the plastic gift card altogether.

As far as mobile e-commerce is concerned, this could be a big deal.

Mobile retail promotions, from text-message codes to redeem for free drinks to the nascent pop-up deals in geolocation app Foursquare, are nothing new. And mobile payments are commonplace in countries like Japan and South Korea. In the U.S., they haven't caught on yet. But having a ubiquitous national retailer like Starbucks in the game could change this.

The barcode-based electronic gift card from the new Starbucks iPhone app.

(Credit: Starbucks)

"We're really venturing into new waters in terms of mobile payment," Stephen Gillett, senior vice president of digital ventures at Starbucks, said regarding the Starbucks Card Mobile app.

"The mobile app is really the powering of some of our most frequently used functions on (the Starbucks card's Web site) and our in-store activity in terms of balance and payment and favorite orders," Gillett said. The app was developed internally with some help from third-party companies like mobile billing start-up mFoundry, he said.

Unless you're geographically very lucky, you won't be able to pay for a venti frappuccino with your iPhone just yet. Only 16 Starbucks outlets, eight in its home turf of Seattle and eight in Silicon Valley, can currently handle the barcode-based gift cards. These are stores already internally designated as test spots for new Starbucks technology, Gillett said.

"In some of these Seattle stores we've tested store manager laptops, allowing them to get instant messaging, full access to e-mail, and conferencing," he said. "These are some of the stores that got the new AT&T Wi-Fi earlier."

As a result, that means the integration process may be smoother for the test stores than it would be for a random Starbucks elsewhere in the country. "The store employees are used to getting new kinds of technology, new kinds of services earlier than most markets," Gillett said.

Estimates vary on just how big the U.S. gift card industry is, but according to the Federal Reserve, it's certainly well into the billions and continues to grow. As for Starbucks, already one in seven transactions at the coffee chain involves its array of gift and loyalty cards, Gillett says. "We see a significant amount of our traffic represented by loyalty cards of some sort," he said.

And eliminating that need for a physical gift card is a pretty obvious next step, especially if you've ever spent any time fishing around for one in a handbag.

The question is whether a new concept like barcode-based gift cards can easily scale to a chain as widespread as Starbucks. Mobile barcode systems have typically been rolled out in far smaller contexts--short-term advertising campaigns, for example, or companies with far smaller reach such as Equinox, a high-end gym in a handful of U.S. cities that recently began letting members check in with an iPhone-based barcode. And while Starbucks has been battered by the recession and has closed several hundred stores in the U.S., it still operates or licenses over 10,000 outlets in the U.S. and thousands more overseas.

So Starbucks is taking a slow approach to mobile payment testing, which means that customers outside of Silicon Valley and Seattle might not be seeing it any time soon.

"We're really working on getting that (customer) feedback before we put any long-term plans in future markets," Gillett said. "This really is a consumer-driven app in so many ways. This is an app that we need the customer experience to have a very strong influence on."

He was equally mum om whether Starbucks Card Mobile will offer advance mobile ordering options or other potential features. "Again, we're really looking to this app hitting the real world before we lock in future functionalities," Gillett said.

The same goes for taking the app beyond Apple's handset. Apple and Starbucks have a years-long and complicated history encompassing both iTunes and AT&T wireless service, but a mobile payment option ideally wouldn't be restricted to the iPhone.

"We are definitely interested in non-iPhone based platforms, particularly Windows and Android and BlackBerry," Gillett said. "But at this point we're just really focused on the launch for this."

Originally posted at The Social
February 11, 2008 7:28 AM PST

Starbucks ditches T-Mobile for AT&T

by Caroline McCarthy
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Ubiquitous caffeine conglomerate Starbucks has ended its Wi-Fi partnership with T-Mobile in favor of one with AT&T.

Under the earlier plan with T-Mobile, Starbucks customers needed a paid subscription to access the in-store Wi-Fi service, and T-Mobile HotSpot subscribers will continue to have access to Starbucks Wi-Fi thanks to an agreement between AT&T and T-Mobile. But the new AT&T plan allows all customers 2 free hours per day, with a $3.99 fee for additional 2-hour chunks of time. Monthly subscriptions will cost $19.99 and will enable access to other AT&T hot-spot locations in addition to Starbucks.

In addition, AT&T broadband customers will be able to surf at the more than 7,000 Starbucks locations in the U.S. for free. The new Wi-Fi partnership is expected to be introduced gradually at Starbucks locations this spring.

It's an understandable move on Starbucks' part; the coffee chain has a number of deals in place with Apple and its iTunes Store. Apple uses AT&T as the mobile service provider for the iPhone. Rumors of a Starbucks mobile ordering interface for the iPhone have been circulating for months.

The new partnership also extends to the business side of Starbucks: AT&T will also power an "enterprise class" network for internal operations.

Originally posted at The Social
February 24, 2007 2:01 PM PST

Weekend Webware: Find Wi-fi hotspots with Hotspotr

by Josh Lowensohn
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I discovered Hotspotr at SF Beta this past week. It's a neat little service that mashes up Google maps with a local Wi-Fi hotspot finder. The real pull of the service is you can rate and comment on hotspots as you would with restaurant reviews on a review site like Yelp. It's the perfect service for the casual Wi-Fi traveler to benefit from road warriors who are willing to take the time to review a wireless access point.

(Credit: CNET Networks)

The ratings aren't just things such as the overall quality of the wireless signal either; you also can rate food and drink, outlet availability, and whether it's better for work or play.

One of the neatest parts of using Hotspotr is its zoom technology called GZoom. GZoom lets you draw a simple rectangle to zoom into precisely the part of the map you want. Sure you can accomplish something similar by simply double clicking on the spot you're looking for, but GZoom lets you select certain regions with much more accuracy.

Hotspotr has listings for more than 1,200 cities right now and a mobile version of the site for use on your cell phone.

December 1, 2006 9:32 AM PST

Zoodango: all too literal social networking

by Molly Wood
  • 1 comment
Zoodango.com (Credit: Zoodango.com)
Just what you were looking for: another social networking site! If you've tired of the purely social scene that is Facebook or MySpace, LinkedIn is just too buttoned down for you, and you want your social networking to happen in the real world, then welcome to Zoodango. (Ok, first things first: Zoodango?)

The deal with Zoodango is it will attempt to combine the over-sharing personal elements of MySpace or Facebook ("lifestyle information"), the impressive-credential listing and resume jargon ("professional information") of LinkedIn, and the time-honored coffee-shop get-together. Yes, Zoodango has a fairly novel approach to networking in this modern, detached, online-only age. The founders actually want you to meet people. Like, in person. The site hopes to facilitate face-to-face meetings via local events or by allowing you to send a (shudder) "ZooVite" to an individual so you can get together for coffee. And Zoodango is so insistent on face-to-face meetings that you can't actually add a person as a contact until you've met in person. The idea is that you'll be creating more credible connections than the mass collection of semistrangers or even bots that populate most folks' MySpace profiles. (Plus, founder James Sun is clearly a Starbucks fan who hails from Seattle, so there's a pretty overpowering coffee-shop culture influence going on here.)

Zoodango isn't a bad concept, but I'm skeptical about its overall appeal. For purely professional purposes, LinkedIn's "bland resume-like reflection" (from the Zoodango press release) of a person's professional experience is not only appropriate, but informative. When it comes to purely social interactions, I think MySpace and Facebook have more than cornered the market. And when it comes to meeting people in person...are we still doing that? That is so pre-Web! The site officially launches in January, so I'll wait to be proven wrong. You never know--maybe there's a seething pent-up desire out there for lattes and in-person business-card swapping, and I just never knew it.

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