Via Mashable : Groupon has already been a lot of things, not all of them successfully. Now, it might become a food delivery company.
Groupon announced on Thursday that acquisition of OrderUp, an online meal delivery startup. Groupon CEO Eric Lefkofsky said that the move gave the company a bigger part of the $70 billion food ordering and delivery sector.
“Online food ordering and delivery represents an untapped opportunity for Groupon and serves as a natural extension of our local marketplace,” Lefkofsky said in a press release announcing the deal.
Terms of the deal were not disclosed.
OrderUp currently operates in 40 U.S. markets with customer bases in Baltimore and Denver, according to the release.
Online food delivery has seen an influx of investment recently, particularly in 2014 and in the first half of 2015. Grubhub dominates the industry, particularly after merging with Seamless in May 2013.
Groupon helped establish the group-buying model during the daily deals craze that began around 2010. Investors rushed to get a piece of the company, which eventually raised more than $1.1 billion in financing. A typical Groupon deal would offer a $40 coupon to a local restaurant for $20.
That market proved unsustainable, as competitors emerged and the deals became unappealing to restaurants. Groupon has been struggling and its shares are down 80% since its initial public offering in 2011.
Food delivery is just the newest attempt by Groupon to turn around its struggling business. The company previously moved to focus on ecommerce, offering travel deals and fashion.
Those efforts proved somewhat successful, helping to stabilize the company’s earnings and halt a steep decline in its share price.