Groupon is a gift-certificate website launched in late 2008 in Chicago, but quickly expanded. It was the brainchild of Andrew Mason, Groupon’s current chief executive. However, Mason was fired in February 2013 after the company's core business was undermined by tough competition and its share price crumbled.

Merging both units will help Alibaba better position itself in its battle for market share with Meituan-Dianping in China

Alibaba set to merge China food delivery units

Alibaba Group Holding will merge its food delivery units and raise funds for the combined group, as it looks to ramp up its fight against rival Meituan-Dianping for the lion’s share of China's multibillion-dollar on-demand services industry, according to a report by Reuters.