Groupon Moves into Food Delivery with OrderUp Acquisition

Alex Spencer

OrderUpGroupon has acquired mobile food ordering and delivery company OrderUp, entering a market Groupon estimates is worth $70bn (£45bn).

OrderUp's site and app enable users to order food, pay for, and track the delivery of, food from local quick-service restaurants, with a focus on college towns in the US. It's currently only available in 40 towns, but has processed over 10m orders since it was founded in 2009.

OrderUp will continue to operate as a standalone brand, staying put in its current Baltimore headquarters, but brings its expertise and technology in this area to Groupon – and potentially more importantly, relationships with thousands of restaurants.

“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.”