Paired with Groupon’s approximately 25 million active North America customers, the deal creates an online and mobile food ordering marketplace of significant size and scale.

OrderUp, which was founded in 2009, is a major competitor in the food delivery space. About OrderUp Headquartered in Baltimore, OrderUp is the most complete on-demand food delivery marketplace for local markets outside of the top metros.

Chicago-based Groupon is best known for its emails offering daily deals at local businesses.

“Groupon’s reach and ability to connect supply and demand at scale make it the flawless destination for us to grow even faster and expand in our targeted local markets”, Jeffery said. This new food delivery platform from Groupon was partially made possible with the acquisition of Baltimore based delivery startupOrderUp. Well, most of their employees will move over to Groupon, but the company will still maintain their headquarters in Baltimore and still be a stand alone brand. It started as a website letting users read restaurant menus online, later adding the ability to order via the Internet, and, eventually, have their orders delivered. Today, the company announced its acquisition of food-delivery service OrderUp and detailed its plans to expand into the $70 billion sector.

Groupon will now compete with companies such as GrubHub (GRUB), Google (GOOGL), and Amazon.com (AMZN), which all offer grocery delivery services, Bloomberg reports.

OrderUp is already available in 40 cities, concentrated in college towns across the country, and it hopes Groupon will continue to grow that number.

Shares of Groupon, which are traded on the Nasdaq, closed up 3 percent Thursday at $5.17.

If Groupon can use this deal to break the walls down and storm GrubHub’s food-delivery castle, it has the potential to eat into some of Yelp’s business as well. “With the power and name recognition – and, I would think, probably capital – behind Groupon, that’ll just make their growth explosive”.