Coffee startup Luckin to extend discount drive despite losses

Despite losses amounting to nearly RMB 900 million ($130 million), Chinese startup Luckin Coffee plans to continue offering subsidies and discounts to Chinese coffee drinkers, a company spokesperson confirmed to TechNode.

According to a business plan reportedly written for the company’s Series B and obtained by Chinese media outlet QDaily, the Chinese coffee firm operated with a net loss of RMB 857 million for the first nine months of this year.

Luckin expects the number for the entire year to be far higher, the company said in a statement. From its perspective, the huge loss is “in line with the forecast by the management team,” since subsidies play a key role in the company’s plan to seize the Chinese market.

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