Sign up for our daily briefing

Make your busy days simpler with the Axios AM and PM newsletters. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to the Axios Closer newsletter for insights into the day’s business news and trends and why they matter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios Pro Rata

Dive into the world of dealmakers across VC, PE and M&A with Axios Pro Rata. Delivered daily to your inbox by Dan Primack and Kia Kokalitcheva.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with the Axios Sports newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with the Axios Des Moines newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with the Axios Tampa Bay newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Nashville news?

Get a daily digest of the most important stories affecting your hometown with the Axios Nashville newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Columbus news?

Get a daily digest of the most important stories affecting your hometown with the Axios Columbus newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Dallas news?

Get a daily digest of the most important stories affecting your hometown with the Axios Dallas newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Austin news?

Get a daily digest of the most important stories affecting your hometown with the Axios Austin newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Atlanta news?

Get a daily digest of the most important stories affecting your hometown with the Axios Atlanta newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Philadelphia news?

Get a daily digest of the most important stories affecting your hometown with the Axios Philadelphia newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Chicago news?

Get a daily digest of the most important stories affecting your hometown with the Axios Chicago newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top DC news?

Get a daily digest of the most important stories affecting your hometown with the Axios DC newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Starbucks in Tianjin. Photo: Zhang Peng/LightRocket/Getty Images

Few have successfully challenged Starbucks anywhere in the world. But now there is Luckin Coffee, a brazenly cool, VC-funded startup in China that, in an astonishing nine months, has swollen to more than 650 locations, a $1 billion valuation, and lots of buzz.

The quick take: We are talking a breakneck coffee war. Chic is Starbucks' greatest asset everywhere, but it is facing a determined rival in the homegrown Luckin, which wants to transform the uppity $5 latte into a more chill, mass-market product.

Why it matters: In both the U.S. and China, Starbucks is losing its mojo. Store traffic in the U.S. was down 2% in the last quarter, and Chinese sales dropped by the same percentage. In the U.S., the answer has been to raise prices. But in China, its drinks are already priced sky-high, and it will have to beat the plucky Luckin in product and service alone.

The latest: Determined to survive and hold onto its clear lead in the world's premier growth market, Starbucks last week announced a high-profile alliance with China's greatest e-commerce behemoth — Alibaba.

  • The alliance is meant to attack Luckin at its strength — fast delivery.
  • Luckin often delivers coffee to offices in 18 minutes, or even faster.
  • Starbucks says Alibaba's Ele.me food delivery affiliate will deliver within 30 minutes.

It's not clear that brute force will be sufficient in a market where once-stout brands can vanish when homegrown rivals prove they know China better. Think eBay and Uber, both of which were eclipsed by local Chinese brands. But Starbucks is going to try — and it starts out with serious advantages.

  • Since launching in China in 1999, Starbucks has grown to around 3,400 locations and captured some 80% of the market, per market research firm Euromonitor International, meaning that almost everyone in big cities knows about it.
  • "For me and my friends, we don’t go to Luckin Coffee as often as we go to Starbucks," a 16-year-old Chinese girl told Axios by email, not wishing to identify her city. "I think that Luckin Coffee is more for people who are working and they want their coffee to be prepared fast."
  • She added, "True, Luckin Coffee is non-expensive compared with Starbucks but that’s not critically affecting the fact that many people don’t know Luckin Coffee if they don’t drink coffee. My parents never liked coffee but they know Starbucks."

The big thing: Starbucks was where many Chinese consumers were introduced to coffee in the first place, and "it's still the brand people look for and crave," says Humphrey Ho of Hylink Group, China's largest digital advertising agency.

Still, the Chinese coffee market is embryonic: Chinese consumers drink about three cups of coffee per person per year, Euromonitor says. Compare that to 363 for Americans and 250 for Britons. That leaves plenty of room for upstarts.

  • Coffee sales grew 400% in 2016 — and experts think the trend will continue, Euromonitor's Michael Schaefer tells Axios.
  • And Starbucks cannot necessarily count on its image. Yi Hao, a 21-year-old Chinese college student from Beijing, tells Axios, "I don’t find Starbucks to be really cool. In terms of whether it is fashionable, the designs on their coffee mugs are pretty, but that’s really it."
  • "To me, it’s just an ordinary coffee shop. There are many other brands of coffee like Costa," a U.K. brand.

What to watch: After rumors spread of the Starbucks-Alibaba alliance, Luckin announced that it had accelerated plans to deliver light snacks — at cut-rate prices compared with those of an unnamed competitor.

Go deeper

First look: Senators propose bill to ban corporate PACs

Sens. Jon Ossoff and Mark Kelly. Photos: Chip Somodevilla (left), Courtney Pedroza/Getty Images

Sens. Mark Kelly (D-Ariz.) and Jon Ossoff (D-Ga.) will soon propose a bill prohibiting for-profit corporations from establishing and managing political action committees, according to a copy of the legislation obtained by Axios.

Why it matters: The introduction of "The Ban Corporate PACs Act" comes amid heightened scrutiny on Capitol Hill regarding money in politics, including efforts to bar companies from influencing political campaigns and federal elections. It would likely face a court challenge and First Amendment concerns.

2 hours ago - Technology

Exclusive: YouTube shuts down two Oath Keepers channels

Stewart Rhodes, founder of Oath Keepers. (Photo: Aaron C. Davis/The Washington Post via Getty Images)

YouTube has deactivated two channels linked to the Oath Keepers militia group whose members have been charged in relation to the January 6 Capitol riot, the company told Axios.

The big picture: Social media platforms that were used to plan or promote the Capitol attack have moved with varying degrees of speed to bar the accounts involved.

FAA clears more planes after 5G fears

Photo: David McNew/Getty Images

The Federal Aviation Administration said Thursday it had approved nearly 80% of the U.S. commercial fleet to perform low-visibility landings at airports with new 5G services after fears of signal interference limited 5G rollout.

Why it matters: The FAA approvals will help provide more certainty after the agency raised fears that 5G signals could reduce the accuracy of certain equipment, known as radio altimeters, that helps planes land and take off in inclement weather.