Groupon Enters the Food Delivery Services Market



Groupon to Go

Groupon (GRPN) recently marked its entry into the food delivery services market with the launch of a new program, Groupon to Go. The service will launch in Chicago, offering food-delivery deals that allow customers to save up to 10% on every order.

In addition to introducing this program, Groupon acquired OrderUp, a Baltimore-based delivery service startup that operates in multiple cities. Groupon’s main objective is to leverage the $70 billion delivery industry by expanding its service in various cities across the US.

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“Food and drink” is the most popular category on Groupon. The company continually works toward promoting suitable deals on its platform by liaising with more restaurants. According to a Statista report and as shown in the above graph, the restaurant industry’s food and drink sales have grown steadily since 2010.

Gaining an edge

Groupon plans to partner with non-delivery restaurants to gain a competitive edge in the growing food delivery market. The company recently reported an active user base of 25 million in North America, compared with GrubHub’s (GRUB) active user base of 5.9 million.

These measures prove that Groupon has realized the importance of e-commerce and mobile applications which have proved beneficial for its competitors like eBay (EBAY) and Amazon (AMZN). eBay and Amazon have been focusing on enhancing its services on mobile applications to attract new users.

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