Food delivery service Grubhub announced it’s partnering with Groupon, which seems to spell the end of local food-delivery company OrderUp.
The deal announced late Monday afternoon will allow Groupon users to order food from Grubhub’s 55,000 restaurant partners through the Groupon app.
“As a leader in local delivery, we’re always looking for more ways to make it easier for diners to find and order food wherever they may be,” said Matt Maloney, CEO of Grubhub. “Groupon’s massive, active mobile audience — and great savings opportunities — will help drive new customers and more order volume for our restaurant partners, further enhancing the value of the Grubhub network.”
The partnership also has Grubhub acquiring 27 OrderUp-owned food delivery markets.
The Canton startup was acquired by Groupon in 2015 for $69 million. At the time of the acquisition OrderUp was expected to remain a standalone brand to help Groupon take on Grubhub. Well, that didn’t pan out.
The Baltimore Business Journal is reporting that 60 OrderUp employees will be laid off and the Canton headquarters will be downsized to a smaller office in Baltimore.
A Groupon spokesman confirmed to Technical.ly that 60 full-time OrderUp employees will be laid off in Baltimore. He said there’s also about 10 part-time employees who will be affected.
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