Food delivery service OrderUp will lay off 70 workers and relocate its Baltimore headquarters as a result of a deal its parent company struck with a competitor.
Chicago-based Groupon, which bought OrderUp in 2015, announced Tuesday that it will partner with Grubhub to integrate its web-based deals with food delivery. As part of the deal, Grubhub will take over 27 OrderUp markets.
OrderUp had about 80 employees working out of its headquarters at the Can Company building when Groupon bought it in 2015. Bill Roberts, a spokesman for Groupon, could not say how many people the company’s headquarters currently employs, but said layoffs would affect 60 full-time and 10 part-time OrderUp employees, some of whom work remotely but are affiliated with the Baltimore office.
Roberts said OrderUp’s headquarters will remain in Baltimore but will move out of its Can Company space.
Employees affected by the layoffs were given notice Monday and Tuesday, Roberts said.
OrderUp was founded in 2009 in Baltimore. The company will retain a presence in 11 markets, including Columbus, Ohio; Eugene, Ore.; northern Colorado and San Diego. The food delivery service uses the OrderUp brand in some of those areas and will continue to do so, while others will continue under separate names.
Currently through OrderUp, Groupon offers food delivery in about 40 markets.
“This’ll take that significantly, significantly higher,” Roberts said.
Grubhub offers food delivery in about 1,100 cities and works with an estimated 55,000 restaurants.
Katie Norris, a spokeswoman for Grubhub, declined to disclose which of the 27 OrderUp markets Grubhub plans to take over will be new to the company.
“As a leader in local delivery, we’re always looking for more ways to make it easier for diners to find and order food wherever they may be,” Grubhub CEO Matt Maloney said in a news release. “Groupon’s massive, active mobile audience — and great savings opportunities — will help drive new customers and more order volume for our restaurant partners, further enhancing the value of the Grubhub network.”
Terms of the deal, which is expected to close later this year, were not disclosed.
“It was something that we think is a win-win, and we’re pretty excited,” Roberts said.
Matt Alexander, OrderUp’s general manager for Maryland, declined to comment.
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