Luckin Coffee (NASDAQ: LK) is adopting a more aggressive approach towards capturing the Chinese coffeehouse market.
The Xiamen-based company is now expanding into the vending machine business to sell hot and cold beverages, and snacks, Reuters reported on Wednesday.
"It allows us to get closer to consumers and we are not restricted by the license approvals," Qian Zhiya, the company's chief executive officer, said at an event where two vending machines were launched, according to Reuters.
Luckin's total number of outlets in China increased to 4,500 by the end of 2019, ahead of its competitor Starbucks Corporation's (NASDAQ: SBUX) 4,300. The company has aggressively expanded in remote areas unserved by Starbucks.
The coffee chain posted $208.9 million in net revenue in 2019's third-quarter, a whopping 557.6% gain on a year-on-year comparison, beating Wall Street estimates.
Luckin's shares closed 1.98% higher at $35.11 on Tuesday.
Starbucks' shares closed 0.31% lower at $87.86. The shares traded further 1.83% lower in the after-hours market.
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