Groupon Teams Up with Grubhub for Food Delivery

Discount meals will soon be delivered to your door.

groupon and grubhub partnership
Photo: Bloomberg / Getty Images / GrubHub

Two of the better known online startups of this decade have teamed up in a move that will hopefully alleviate some of both brands’ struggles. Deal site Groupon, which was a highly touted IPO when it hit the market in 2011 but has struggled to excite investors since, has partnered with food delivery service Grubhub, the country's most popular food delivery app. Now Groupon restaurant discounts will be integrate with the delivery service's large network.

Under a new deal, Groupon users can now order from Grubhub’s approximately 55,000 restaurants via the Groupon platform. Grubhub will also take over ordering and delivery for Groupon to Go, which serviced just a handful of cities, as well as OrderUp, a restaurant delivery company that Groupon acquired in 2015. As a result, Groupon will now be able to offer restaurant delivery in around 1,100 markets compared to the mere 40 they operated in previously. For Grubhub’s efforts, the country’s largest delivery service will now have access to Groupon’s massive customer base of 31.6 million and will earn a commission off every order placed, a potentially lucrative group of new customers – assuming that the majority of active users haven’t already been using Grubhub separately. The brand also teamed up with TripAdvisor earlier this year to allow users of the latter site to order take out around the globe.

That said, Groupon’s killer app has always been its deals program – the “coupons” from which “Groupon” gets its name. Now users will be able to redeem these deals directly through Grubhub, which should theoretically make both using and offering Groupons more convenient. “We're thrilled to join forces with Grubhub to vastly expand the number of food delivery options available through our marketplace,” Groupon CEO Rich Williams said in a statement. “This partnership connects two of the biggest players in local commerce and is a win for both consumers and restaurants by providing people with more savings and access to the food they want, when they want it.”

Overall, the deal would seem like a win for both brands, though Groupon, which has struggled to stay significant after the initial excitement of its online coupon model, would seem to have more on the by finding a way to cash in on restaurant delivery.

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