Luckin Coffee’s app has boost rocketed to become the second hottest in China as consumers rushed to say a free drink that it has long provided for downloading, worried the chain would possibly fall after it said much of its sales in 2019 were fabricated.
The coffee chain’s app often ranks between the 70th and 100th hottest free app downloads for users of Apple’s iOS operating system in China, based on app efficiency tracker App Annie. Apple’s App Store is one of the largest in China.
Luckin’s shock announcement last Thursday that its chief operating officer (COO) and other workers had fabricated sales despatched its shares plunging over 80% and wiped more than $5 billion off the corporate’s market capitalization.
The Starbucks Corp competitor only went public in 2019, positioning itself as a tech model of a retail business, where users ordered coffee through its app for supply to their offices and houses.
It has relied heavily on discounted sales to push its fast development and capture market share. The loss-making company started operations in January 2018 and by December 2019, had over 4,500 stores – overtaking Starbucks, with 4,100, in the course.
Luckin, on Sunday, mentioned its business would proceed to operate as normal and apologized to its customers.