Groupon And Grubhub Kick Off Partnership In Chicago

Hungry consumers in Chicago now can take part in the latest expansion of online food delivery programs. Groupon announced news on Tuesday (May 8) that its new “delivery partnership” with Grubhub has gone live in the Midwestern city.

Details were scarce. However, Groupon is scheduled to release its first-quarter earnings on Wednesday (May 9), and a spokesperson for the company said more information about this and other programs would be announced then. The partnership allows Groupon users to place orders with the approximately 55,000 food providers on Grubhub. The idea is to enable users to redeem Groupon offers with restaurants on Grubhub.

“Our customers have a demonstrated desire for delivery options on Groupon. By partnering with the premier online pickup and delivery marketplace in Grubhub, we’re able to add their amazing restaurant roster to our strong local food and drink inventory,” said Gene McKenna, Groupon’s vice president and general manager of food and drink. “Turning Groupon into a daily utility for our customers means having relevant, transactable inventory for every local need, and food delivery fills an important space in our marketplace.”

Groupon said it expects to complete its full ordering integration with Groupon by the end of 2018. Groupon has recently completed other marketing partnerships with the likes of tour company Viator, Universal Orlando Resort Theme Parks and parking services firm ParkWhiz.

The launch of the program in Chicago, Groupon’s hometown, comes at a busy time for the online deal operator and eCommerce marketplace. Groupon recently added American Express to the Groupon+ platform, a free-to-claim, cash back deals program available in about 25 U.S. markets that enables eligible consumers to redeem Groupon discounts without dealing with paper vouchers or handing over phones.

Grubhub, meanwhile, recently reported first-quarter financial results that included a 49 percent year-over-year revenue increase along with a 35 percent year-over-year increase in daily active orders, to 436,900. However, the number of daily active orders did not meet Wall Street expectations of 442,500.