Luckin Tea will launch a separate app and a mini-program focused on lower-tier cities.
Shares slid overnight after losses hit nearly $100 million in the quarter.
Users can locate the nearest coffee machine and place an order through the Luckin app.
Luckin Coffee and Tencent have been partners since Sept. 2018.
The company is currently worth $2.2 billion following a $200 million round of funding in December.
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.
Luckin’s announcement comes amid its escalating battle with Starbuck for China’s caffeinated drink lovers.