Luckin Tea will launch a separate app and a mini-program focused on lower-tier cities.
The results reflect an improved cost control strategy.
The coffee upstart is expanding aggressively across product categories and markets.
Users can locate the nearest coffee machine and place an order through the Luckin app.
Luckin’s expansion to the Middle East and India extend its competition with Starbucks to more markets.
Luckin Coffee is projected to have the largest coffee network in China by the end of 2019 at its current rate of growth.
Shares slid overnight after losses hit nearly $100 million in the quarter.
Luckin is under financial pressures as the startup coffee chain is showing signs of overheating.
Coffee competition expands to second-and third-tier cities in China.
This is the first time Luckin has sold branded merchandise as it evolves its marketing and branding strategy.