Luckin Coffee's wool is not good either! The subsidy has been reduced and the threshold of free delivery fee for northward has been raised by 20 yuan.

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Still want to scrape wool in Luckin Coffee (Luckin coffee)? It's not that easy.

Recently, Luckin Coffee's stores in Beijing and Shanghai quietly raised the threshold for free distribution fees, from 35 yuan to 55 yuan. This means that even if you buy two cups of Lucky's most expensive coffee (27 yuan), you still have to pay a distribution fee of 6 yuan.

According to interface news reporters, at present, in addition to Beijing, Shanghai, Chengdu, Guangzhou, Shenzhen and other cities, consumers can still enjoy 35 yuan free distribution fee service.

Luckin Coffee replied to the interface news that the company did adjust the delivery fees for its stores in Beijing and Shanghai. "the preferential and waiver policies for delivery fees are dynamically adjusted according to the situation, and the specific prices are subject to APP display."

It is clear that the coffee brand, which is rapidly becoming popular on takeout, is starting to cut distribution costs from the two biggest cities with the largest number of stores. By the end of November, the company had opened more than 1700 stores in more than 20 cities in China, including 300 in Beijing and nearly 250 in Shanghai.

Prior to this, Luckin Coffee quickly expanded its market share through a series of interactive subsidies intended to enhance customer stickiness, as well as the rapid expansion of offline stores. When Luckin Coffee announced the completion of round A's $200m financing in July, its founder Qian Zhiya said Luckin Coffee's promotions and subsidies would continue for "quite a long time". Since then, Luckin Coffee has also launched a light food series (cakes, Sikang, sandwiches, etc.) and has a long-term 50% discount promotion, with discounted prices ranging from 6.50 yuan to 12.50 yuan.

Now it seems that the promise that promotions and subsidies will continue for "a long time" seems to be crumbling.

Although Lucky did not disclose to the interface news why it raised the threshold for free distribution in key cities, in the face of the increasing number of new entrants in the market and the increasingly fierce competition, Lucky's model of attracting consumers through preferential subsidies is not only high in cost, but also faced with the problem of how to increase customer stickiness and improve repurchase rate.

In addition, if you want to go public in the future, it is also something that Ruixing must consider to reduce costs in order to get good paper figures.

Luckin Coffee is in the process of raising a new round of financing of between $200m and $300m, Reuters reported in November. Earlier, the company had early discussions with investment banks about an overseas initial public offering (IPO), most likely in Hong Kong or New York. But Ruixing previously said in response to the interface news that the news was not accurate.

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