Groupon acquires OrderUp, enters food delivery battle

by Sam Dewey
July 17, 2015

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Groupon has acquired Baltimore-based OrderUp, an on-demand food ordering and delivery startup, for an undisclosed sum. OrderUp currently has presence in almost 40 markets nationwide, including Denver and Boulder, CO.

“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 in a statement. “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.”

Groupon has already started to make its move on the food ordering and delivery vertical. According to the Chicago Tribune, the company quietly rolled out Groupon to Go, which allows customers to order food nearby for delivery or pickup. Groupon to Go currently operates in beta and is available to a small percentage of Groupon customers in Chicago.

Since its launch in 2009, OrderUp has processed more than 10 million orders with its free mobile app for iOs and Android. While its employees will join Groupon, OrderUp will continue to operate as a standalone brand and maintain its headquarters in Baltimore, MD.

OrderUp will be promoted through Groupon’s prevailing marketplace—which comprises about 25 million North American customers. OrderUp punctuates the pairing with an exclamation point, bringing to the table its own experience of more than 10 million orders served.

“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 in a statement. “We look forward to bringing the thousands of great restaurants that we feature to hungry Groupon customers across the country.”

Earlier this year, Groupon also acquired Chicago-based PrettyQuick, also for an undisclosed amount. The beauty booking startup also continues to run as a standalone brand.

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