Groupon’s appetite for growth

With more and better options available for online food ordering, more people are shopping online for their meals. In the US, the food delivery sector is now viewed as a $70 billion industry, with Chicago-based GrubHub heating up the scene with a successful IPO in 2014 raising $192 million in the process. Competitors like Yelp’s Eat24 and Square’s Caviar are also competing for a piece of the pie. Early this year, UK’s food delivery service leader Just Eat gobbled up SinDelantal, a Mexico-based food ordering website, and Menulog, a takeway platform in Australia and New Zealand. Last week, group-based social ecommerce giant Groupon announced that it has acquired OrderUp, an on-demand food delivery startup based in Baltimore. According to Groupon, OrderUp has 25 million North American customers, offers services in almost 40 markets, and has processed more than 10 million orders. The acquisition is said to be part of Groupon’s strategy to expand its ecommerce offerings. With Groupon’s huge customer and merchant base and OrderUp’s operational capability, the food delivery business could be a great way for Groupon to bolster its growth and give the company a foothold in the multi-billion dollar food ordering and delivery industry.

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