Groupon, a deal website known for its connecting users with local deals, has acquired a food delivery startup OrderUp. Financial terms of the deal were not disclosed. The deal provides a big boosts to Groupon\’s presence in the $70 billion on-demand food delivery market. 

Founded in 2009 and based in Baltimore, OrderUp is the most complete on-demand food delivery marketplace operating in nearly 40 markets across the United States. The food delivery startup provides easy access to great food from locals\’ favorite restaurants. It operates in 26 states and serves metropolitan areas such as Baltimore and Denver, and also areas with large student populations such as Boulder, Colorado and Baltimore. 

Under Groupon, OrderUp will continue to operate as a standalone brand with inventory cross promotions through Groupon\’s marketplace and merchant pages. Groupon will maintain its current Baltimore headquarters and its 15,000-square-foot space at the Can Company in Canton. 

Groupon CEO Eric Lefkofsky said in a statement that: “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.”

OrderUp processed more than 10 million orders, it brings food ordering and deliver expertise. Combined this expertise with Groupon\’s online presence, the deal creates an online and food delivery marketplace of significant size and reach ( approximately 25 million North American Groupon\’s users).

Before the acquisition, OrderUp has raised $10 million in investment last year, including $7 million from Revolution Ventures. Currently, OrderUp employs 80 people in its Baltimore headquarters and another 50 people across the United States.

Image Credit: TechCrunch and BaltimoreSun

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