Popular discount website Groupon is getting into the food delivery game and going toe-to-toe with industry giants like GrubHub and Seamless. According to TechCrunch, Groupon acquired Baltimore-based delivery service OrderUp in an attempt to make its way into the crowded $70 billion industry.
OrderUp is already available in 40 cities, concentrated in college towns across the country, and it hopes Groupon will continue to grow that number. CEO of OrderUp Chris Jeffrey explains in a news release, "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." As for Groupon's view of the new partnership, its CEO Eric Lefkofsky said in a press release, "Online food ordering and delivery represents and untapped opportunity for Groupon and serves as a natural extension of our local marketplace." The mutually beneficial relationship is sure to also benefit Groupon's 25 million national customers who will now be able to place orders and get food delivered through their Groupon accounts.
Groupon joins the growing list of companies expanding into the food delivery sector. Online megastore Amazon tested delivery in Seattle, and car service Uber rebranded its original uberFRESH concept into uberEATS before expanding from the West Coast to New York and Chicago. In fact, Uber took the expansion as far as Indonesia, temporarily offering fasting Muslims food delivery during the holy month of Ramadan. Even companies like Starbucks are testing delivery in their markets, as well as New York restaurants such as Papaya King and Joe's Pizza, which are giving a taste of their iconic New York food to the rest of the country.