Groupon has become popular and well-known because of its half-off restaurant deals and event coupons, but it's not pleasing investors with slumping share prices. Even now that its sales are up, the company's stocks are still sliding, and the company is realizing that the "deals" market may not be the money-maker it was once thought to be.
Possibly due to this shift, the company acquired food delivery startup OrderUp to expand its online delivery presence. This acquisition will enable Groupon to enter the $70 billion food ordering and delivery sector, using OrderUp's already established presence as a stepping stone. OrderUp has already processed 10 million orders and is available in 40 major U.S. markets.
LivingSocial tried to make the same move when its daily deals were not providing enough revenue by launching a takeout and delivery service a few years ago. However, it did not see a lot of success from that venture, which may not bode well for Groupon. Groupon made solid revenue of $750 million in Q1 2015, but it still hasn't been able to satisfy investors with its bottom line growth.
Some analysts believe Groupon will be on the auction block soon, possibly with Google and Amazon.com as buyers. Groupon's market capitalization is $3.46 billion, which would be no problem for either company to pay. Google offered to purchase Groupon almost five years ago, and some think because of that it would not try to buy it again, but both Amazon and Google have been increasing their focus on local commerce, which may make Groupon an attractive acquisition for the technology giants.
Despite the warnings of Elon Musk, artificial intelligence is on its way. It's not a topic we've shied away from in the Food Institute Blog, either, but a few developments over the past few weeks have inspired me to once again dive into the technology of the future in hopes of determining how it will affect the food industry.read more
Now, more than ever, the issue of food waste is top of mind for the food industry. Despite retailers, foodservice operators and manufacturers trying to tackle it head on, many challenges lurk around the corner. Despite this, innovative and impactful approaches abound to tackle this complex concern.read more
Jennette has been with The Food Institute since 2013. As Marketing Director, she is responsible for promoting all Food Institute books, seminars and webinars, as well as writing and editing the Food Institute’s annual publications, such as Food Business Mergers & Acquisitions, The Food Industry Review and The Almanac of the Canning, Freezing, Preserving Industries. Additionally, she writes for and edits the daily news update, Today in Food, and contributes to the weekly Food Institute Report. She has a background in non-profit and environmental marketing, programming and writing, and graduated from Rowan University in 2012 with a degree in Communication Studies.
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