Former Penn State students Chris Jeffery and Jason Kwicien founded OrderUp in State College and expanded it into 27 states in six years time.
They just cashed in.
Groupon announced in a press release Thursday that it acquired OrderUp, an on-demand online food ordering company that operates in about 60 cities, according to OrderUp’s website. The release did not disclose financial details of the acquisition.
“Online food ordering and delivery represents an untapped opportunity for Groupon and serves as a natural extension of our local marketplace,” Groupon CEO Eric Lefkofsky said in the release. “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.”
The deal adds OrderUp’s presence in food delivery — it has served about 10 million orders — to Groupon’s 25 million customers in North America.
“Groupon’s reach and ability to connect supply and demand at scale make it the perfect destination for us to grow even faster and expand in our targeted local markets,” Jeffery, OrderUp’s CEO, said. “We look forward to bringing the thousands of great restaurants that we feature to hungry Groupon customers across the country.”
OrderUp, as part of the deal, will operate as a stand-alone brand with inventory cross-promotion through Groupon’s marketplace and will maintain its Baltimore headquarters.