Following its recent acquisition of food-delivery startup OrderUp, Groupon Thursday launched its first foray into on-demand food delivery, Groupon To Go.
In a food-courier market flush with competitors, including UberEATS, GrubHub, Seamless and Postmates, Groupon To Go’s differentiator hearkens back to the daily-deal company’s core competency: discounts. Groupon, which has been testing the delivery service in Chicago since March, offers customers the ability to save 10 percent or more in the form of instant cash back when they place an order using the platform.
“Most people get delivery and takeout multiple times a month, and with Groupon To Go, we’re giving them an easy way to save money every time they do so,” said Sean Smyth, vice president and general manager of Groupon To Go. “Delivery and takeout is a natural extension of our local deals marketplace, adding hundreds of the best restaurants to Groupon—including many that haven’t offered online ordering until now.”
While Groupon’s food-delivery service is available solely in Chicago, it will expand to other markets—leading with Austin and Boston—later this year. OrderUp will serve as the company’s ordering-and-delivery presence in midsized markets, said Groupon, which also plans to offer delivery fulfillment services for participating restaurants.