The astounding fraud admission from beverage chain Luckin has put more US-listed Chinese companies in regulator and short-seller crosshairs.
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.
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.
Hot Chinese coffee company’s new fundraising comes just months after last round.
Luckin Coffee, the coffee shop startup using market acquisition tactics borrowed from China’s internet companies, has written an open letter to Starbucks accusing it of monopolistic practices in the country and proposing a possible lawsuit, according to Tencent News (in Chinese). Luckin has taken issue with Starbucks’ exclusivity rights with property owners and putting pressure […]