Groupon (NASDAQ:GRPN) join forces with GrubHub (NYSE:GRUB) to grab larger chunk of food delivery markets
According to latest reports, online-marketer Groupon (NASDAQ:GRPN) is set to combine with food delivery service GrubHub (NYSE:GRUB) on Monday to offer food with discounts.
Reports said that this joint venture will allow people to use a Groupon (NASDAQ:GRPN), when they order GrubHub Inc (NYSE:GRUB) delivery via Groupon. At the moment there are no such plans available to cater Groupon deals via the Grubhub platform.
Meanwhile all the terms and conditions for the agreement are yet to be known, but GrubHub reportedly will take over 27 of Groupon’s OrderUp food delivery markets with the transaction.
“We’re thrilled to combine with Grubhub to enormously expand the number of food delivery options available through our marketplace,” Groupon CEO Rich Williams said in a statement. “This partnership joins two of the largest players in local commerce and is a win for both consumers and restaurants by offering people with more savings and way in to the food they want, when they want it.”
CHICAGO, IL-based Groupon has been working to enhance its customer base by targeting millennial audiences. The firm reportedly has been buying ads on YouTube, Hulu, Crackle and other accepted streaming video platforms in the recent months.
The move forward seems effective, as the firm revealed it added more than 5 million new users in North America in 2016, that is the tallest number in four years.
Furthermore NEW YORK, NY-based Grubhub, which claims to be the “nation’s leading takeout marketplace,” posted $493.3 million in sales last year. The company has more than 55,000 participating restaurants.
Moreover GrubHub (GRUB) CEO Matt Maloney said during the announcement that the “company’s huge, active mobile audience – and great savings opportunities – will help compel new customers and more order volume for our restaurant partners, further attracting the value of the Grubhub network.”
Following the announcement GrubHub ( GRUB) shares surged 3% in aftermarket trading, while Groupon (GRPN) (NASDAQ: GRPN) shares were up 3.7%.