Luckin Coffee was incorporated in October 2017; by January 2018, the company had opened its first shops in Beijing and Shanghai, China. The company announced the completion of Series A financing to a total of US$200 million in July 2018 backed by Centurium Capital, Joy Capital, and GIC.

By October 2018, the company had opened 1,300 stores, surpassing the number of Costa Coffee stores to become the second-biggest coffee brand in China. Luckin Coffee also signed a strategic cooperation agreement with Tencent.Much of Luckin's expansion was fueled by an aggressive marketing strategy which saw the company spend three times as much as it earned to feed its growth.

In January 2019, the company announced that it planned to open 2,500 new stores and surpass Starbucks to become the biggest coffee brand in China. Luckin also gained a listing in the US stock market, applying to the Nasdaq and starting to trade at $17 a share.After reaching $25.96 a share on the first day, the stock dropped to $16 a share on its second day of trading.

Luckin Coffee's development can be characterized by rapid growth, innovative technology, and strategic marketing, followed by a period of significant challenges and subsequent recovery.

 Initially, Luckin focused on aggressive expansion, leveraging technology for online ordering and delivery, and employing aggressive marketing tactics to gain market share. After facing accounting fraud allegations and delisting from the NASDAQ, the company underwent restructuring, focused on operational improvements, and rebuilt its brand image. Currently, Luckin is experiencing significant growth, expanding its store network, and focusing on quality and customer experience.