Groupon buys online food delivery company OrderUp
Groupon has bought OrderUp, an on-demand online and mobile food ordering and delivery marketplace operating in nearly 40 markets across the United States. Groupon said that the acquisition of OrderUp will “significantly boost” the company’s presence in the food ordering and delivery sector – which it believes is a marketplace worth some $70 billion.
“Online food ordering and delivery represents an untapped opportunity for Groupon and serves as a natural extension of our local marketplace,” said Groupon CEO Eric Lefkofsky. “The potential in delivery and takeout is apparent – especially with the growth of mobile – and OrderUp’s operational ability, coupled with Groupon’s engaged customer and merchant base, bring tremendous scale to the space.”
According to Groupon, OrderUp has so far processed more than 10 million orders, established relationships with thousands of restaurants and brings significant food ordering and delivery expertise. Groupon said that when this is paired with Groupon’s approximately 25 million active North America customers, the deal “creates an online and mobile food ordering marketplace of significant size and scale.”
“Groupon’s reach and ability to connect supply and demand at scale make it the perfect destination for us to grow even faster and expand in our targeted local markets,” said OrderUp CEO Chris Jeffery. “We look forward to bringing the thousands of great restaurants that we feature to hungry Groupon customers across the country.”
OrderUp will continue to operate as a standalone brand with inventory cross promotion through Groupon’s marketplace and merchant pages. The company will maintain its current Baltimore headquarters.
