OrderUp was acquired by Groupon for $69 million in cash in July, according to a quarterly report filed with the SEC. The deal has a contingency of an additional $20 million after valuation of OrderUp’s assets, which could make it worth $89 million when all is done, the report states.
OrderUp, the seven-year-old Baltimore-based online food delivery company, delivered some of the biggest Baltimore tech news of the year so far when it announced the acquisition by the Chicago-based company best known for online deals.
The value of the deal wasn’t immediately disclosed by the two companies when they announced the agreement on July 16. That’s lead to a month of handicapping and napkin scribbling among Baltimore’s tech community as they tried to figure out how much Groupon paid. Credit Baltimore Business Journal for picking out the valuation first.
OrderUp will remain a standalone brand and keep its headquarters in Baltimore. With the deal, Groupon is moving aggressively into the online delivery space as it seeks to take on early leaders like GrubHub. OrderUp CEO Chris Jeffery said he saw value in Groupon’s resources and reach into bigger markets, while Groupon was interested in OrderUp’s technology and existing presence in about 40 midsize cities and college towns.
Two weeks after the OrderUp acquisition, Groupon formally launched a food delivery branch called Groupon To Go. That service, which purports to save customers 10 percent on every order, is initially available in Chicago.
This week, Uber moved into the food space by launching UberEats in San Francisco.-30-