As part of the deal, the two companies have agreed to let Groupon provide its users with the ability to order food delivery from Grubhub's 55,000 restaurant on its platform.
It is expected that the deal will allow consumers to use Groupon deals as well when they place their order.
"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," said Rich Williams, CEO, Groupon.
"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," said Matt Maloney, CEO, Grubhub.
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