Shares of Grubhub (GRUB - Free Report) and Groupon (GRPN - Free Report) are moving higher in after-hours trading on Monday after the companies announced a strategic partnership that will bring food delivery to Groupon customers in the United States.
On top of allowing customers to order food delivery from Grubhub’s partner restaurants directly on Groupon’s platform, the deal is expected to include exclusive Groupon deals for those using the new delivery options.
“We’re thrilled to join forces with Grubhub to vastly expand the number of food delivery options available through our marketplace,” Groupon CEO Rich Williams said in a press release. “This partnership connects two of the biggest players in local commerce and is a win for both consumers and restaurants by providing people with more savings and access to the food they want, when they want it.”
In addition to the new partnership, Grubhub is acquiring certain assets in in 27 of Groupon’s OrderUp food delivery markets. Grubhub will also provide ordering and delivery services in Groupon To Go markets.
“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. “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.”
Groupon shares closed about 1% lower on Monday, but the stock gained nearly 4% in after-hours trading shortly after the announcement was made. Grubhub was also down slightly on the day, but shares popped more than 3.5% following the announcement.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade, which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>