03/29/2016 Richmond Times-Dispatch
Groupon’s OrderUp, an on-demand restaurant food-delivery service, is now available in parts of Richmond.
More than 40 local and chain restaurants in the city are offering menu items through the OrderUp app and website (orderup.com), Groupon spokesman Nick Halliwell said Monday. The delivery area includes downtown Richmond, the Fan and Museum districts, parts of Shockoe Bottom and Church Hill, and the Byrd Park area.
Beginning today, consumers will be able to click on the free app — available on Android and iOS — select a restaurant, see what items are available for delivery and place and pay for the order. There is typically a $3.99 delivery fee, and some restaurants have a minimum order.
OrderUp is already operating in 40 markets across the country, including the Norfolk-Virginia Beach and Charlottesville areas in Virginia, Halliwell said.
“Food and beverage is one of the most important categories in the Groupon marketplace,” he said, adding that food delivery is estimated to be a $70 billion a year market in the United States, with about one-third of all restaurant spending on takeout and delivery.
Chicago-based Groupon acquired OrderUp in 2015 for $68.7 million in cash and $9.6 million in contingent consideration.
“What really excited us about OrderUp is that delivery is a very high-frequency business, where people are ordering food to-go quite a bit, whether it’s a busy family, or somebody ordering food to their office during their lunch hour, or they’re a student at (Virginia Commonwealth University),” Halliwell said. “It’s a great way to get people to interact with the Groupon platform on a high-frequency basis.”
The delivery service partners with restaurants that typically do not offer delivery service and with local independent delivery drivers who are screened by OrderUp,
Halliwell said some of the local restaurants participating are Coriander, Greenbriar Cafe & Coffeehouse, Franklin Street Market, Red Eye Cookie Company, Strawberry Street Cafe and Weezie’s Kitchen, as well as national brands such as Chipotle, Cold Stone Creamery, Firehouse Subs, Noodles & Company, Subway and Which Wich.
Consumers will be also able to use the app to track when their food will be delivered.
“What’s great about the app and the website is you can enter your address and we allow you to discover the restaurants that deliver to you,” said Chris Jeffery, OrderUp CEO, who co-founded the service in 2009.
There are also functions for group ordering, he said.
“We have to work with three different stakeholders — the consumer, these independent drivers and contractors and the restaurants — to make sure we get it right every time within a short time frame. Once you place the order, then we use our algorithm, and we’ve done a lot of work to figure out how many drivers we need on certain days of the week, times of the day, etc. . . .”See Original Article