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Groupon acquires food ordering and delivery startup OrderUp

Groupon Inc. is
acquiring online and mobile food ordering and delivery service OrderUp,
plans to expand into the $70 billion sector, reports
TechCrunch.

The deal
“creates an online and mobile food ordering marketplace of significant size and
scale” and provides opportunities for inventory cross-promotion, Groupon said
in the report.

Groupon Inc. is
acquiring online and mobile food ordering and delivery service OrderUp,
plans to expand into the $70 billion sector, reports
TechCrunch.

The deal
“creates an online and mobile food ordering marketplace of significant size and
scale” and provides opportunities for inventory cross-promotion, Groupon said
in the report.

Global
e-commerce marketplace Groupon connects
millions of subscribers with local merchants by offering activities, travel,
goods and services in more than 45 countries. Launched in November 2008,
Groupon first market was Chicago, followed soon thereafter by Boston, New
York City, and Toronto. By October 2010 Groupon served more than 150
markets in North America and 100 markets in Europe, Asia, and South
America, and has 35 million registered users.

Groupon began as
a website that sends deal-of-the-day emails and later began to transforming
into a more traditional e-commerce site and mobile application.

Founded in 2009,
OrderUp operates in areas including Baltimore and Denver, and several cities
with large student populations like Bloomington, Ind.

Last year, the
Baltimore Company received $9 million in Series A funding led by Revolution
Ventures. At the time, 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.”

“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,” OrderUp CEO Chris Jeffery said in a news release. “We
look forward to bringing the thousands of great restaurants that we feature to
hungry Groupon customers across the country.”

For its part,
Groupon sees this as an opportunity to better serve its 25 million customers
across the country. “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 a 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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