This week, it was announced that Groupon would be entering into a partnership with Grubhub. Through the partnership, the companies will attempt to provide consumers with a discounted food delivery service. Unfortunately, not everyone is cheering the announcement.
OrderUp is an online food delivery service that was founded in Baltimore, Maryland in 2009. In July of 2015, Groupon acquired OrderUp. With the aforementioned partnership, Grubhub is now set to take over 27 markets previously served by OrderUp.
When Groupon acquired OrderUp in 2015, they had roughly eighty employees at their Can Company building headquarters. Spokesman for Groupon, Bill Roberts, was unable to provide a definite number of employees currently working for OrderUp. However, he did confirm that the layoff would impact ten part-time and sixty full-time OrderUp employees.
Some of those workers work remotely, while others are directly affiliated with the Baltimore facility. Simultaneously, OrderUp is expected to relocate its headquarters out of the Can Company building to another Baltimore location. Employees that were affected received notification on Monday and Tuesday according to the company’s spokesman.
OrderUp will continue to serve eleven markets, including Columbus and San Diego. The service will still be provided under the OrderUp umbrella in many of its service areas. In other areas, OrderUp’s service will be provided under a different name. Groupon currently offer food delivery to nearly forty markets thanks to its partnership with OrderUp.
The company now believes that the number will climb higher. At this point in time, it is unknown which markets Grubhub will take over from OrderUp. The Groupon spokesperson insists that the deal would be a “win-win” for both companies. The terms of the deal have not been disclosed, but it is expected to close sometime later this year.