Two weeks ago, Groupon acquired OrderUp, one of the larger on-demand food delivery services.1 While it was clear that Groupon was going to use the acquisition to power a move into a more robust food delivery offering, it was not clear that it would be done so quickly. On Thursday, the Chicago company officially announced the national launch of Groupon To Go. 2 The platform had been operating in Chicago in a pilot/beta program since March of this year. Sticking closely to its already-established niche, the main value that Groupon To Go offers consumers is savings of, “10 percent or more in the form of instant cash back on every order.”3
For the immediate future, the program will continue to be limited to Chicago, with expansion into major metro areas continuing throughout 2015, beginning with Ausitn, TX and Boston, MA. Right now, the platform is working with several national chains: Quiznos, Popeyes, Subway and Papa John’s, as well as a whole host of Chicago restaurants, including Ditka’s Restaurant.
This is a pretty natural fit for Groupon as their platform already has a very strong presence in the food and beverage industry. Groupon To Go also represents a pretty significant opportunity for restaurants, or rather it will once it is fully rolled out nationwide. For all the advancements in technology, the food and beverage industry, as a whole, has lagged a bit behind. As such, the overwhelming majority of restaurants do not offer online ordering. It is hard to pick out just one reason for this, but one factor is the huge number of different services. As this is an area pretty much dominated by startups, there is not a lot of brand recognition in the area. That said, just about every single restaurant owner or operator in the country knows about Groupon. Overall, this seems like a great move for all parties involved. Groupon ads a new product; restaurants will be able to sell online without investing in infrastructure, and eventually have deliveries fulfilled by Groupon; customers will can place orders from one location, with savings of at least 10%:
Future Groupon To Go enhancements will include real-time order tracking, group ordering and the ability to schedule delivery and takeout for another date and time. In addition, Groupon To Go plans to offer delivery fulfillment services for participating restaurants–leveraging OrderUp’s technology and operations platform.4
To launch the product, Groupon has enlisted the help of Hall of Fame linebacker and Super Bowl winning coach Mike Ditka in a contest:
Just in time for the upcoming football season, Groupon is offering fans the opportunity to win a Groupon To Go office party complete with tailgate games and food delivered by legendary former Chicago Bears coach and player Mike Ditka5
To enter head over to the contest page.
- Groupon News Room, “Groupon Acquires OrderUp to Power Nationwide Food Ordering and Delivery,” 16 July 2015 ▲
- Groupon News Room, “Groupon Serves Up Groupon To GoTM–a Delivery and Takeout Service that Saves Customers 10 Percent or More on Every Order,” 30 July 2015 ▲
- Ibid ▲
- Ibid ▲
- Ibid ▲