7/16/2015 The Wall Street Journal
Groupon Inc. is acquiring online and mobile food ordering and delivery service OrderUp, enhancing its local food and drink business.
The deal “creates an online and mobile food ordering marketplace of significant size and scale” and provides opportunities for inventory cross-promotion, Groupon said.
Financial terms weren’t disclosed in a statement from Groupon.
Chicago-based Groupon, which began as a website that sends deal-of-the-day emails, has been transforming into a more traditional e-commerce site and mobile application.
OrderUp was founded in 2009. Last year, the Baltimore company received $9 million in Series A funding led by Revolution Ventures.
OrderUp operates in areas including Baltimore and Denver, and several cities with large student populations like Bloomington, Ind. When OrderUp received its Series A financing, the company said it would expand to underserved localities. Revolution managing partner Tige Savage said in a statement at the time that “outside the major metropolitan markets, it’s shockingly difficult to find online food delivery options.”
In May, Groupon said its first-quarter loss narrowed as the company recorded strong billings in North America, but the number of active users fell to 48.1 million in the first quarter from 53.9 million in the fourth quarter.
GrubHub Inc., which merged with Seamless in 2013, is a top player in online food ordering. In February, GrubHub unveiled moves to add delivery services with the acquisitions of DiningIn and Restaurants on the Run. Other competitors in the sector include Caviar Inc., which focuses on high-end restaurants.See Original Article