Merchant Innovation

Groupon Grabs OrderUp Food Delivery Service In Latest Acquisition

The ever competitive world of online food delivery has found a way to get that much more competitive.

Groupon is apparently jumping into the game, as it announced late yesterday (July 16) that it will be acquiring food-delivery service OrderUp.

“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,” he said in the press release.

OrderUp was founded in Baltimore in 2009. Since then, it has expanded into 40 cities nationwide. Unlike its competitors in the field though, OrderUp didn't do the standard march through America's biggest urban areas. Instead, the company focused on college towns.

So far, so good for the strategy. OrderUp has processed over 10 million orders as of now.

On Groupon's end, OrderUp is another step in improving its brand and expanding past its standard discount offers for their 25 or so million customers.

“Online food ordering and delivery represents an untapped opportunity for Groupon and serves as a natural extension of our local marketplace,” Groupon CEO Eric Lefkofsky said in the press release. “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.”

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The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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