Updated
Updated · Nation's Restaurant News · Oct 20
Olo Launches 250-Brand Ordering App With 5% Fee as It Undercuts 15%-30% Delivery Commissions
Updated
Updated · Nation's Restaurant News · Oct 20

Olo Launches 250-Brand Ordering App With 5% Fee as It Undercuts 15%-30% Delivery Commissions

3 articles · Updated · Nation's Restaurant News · Oct 20

Summary

  • More than 250 restaurant brands, including Five Guys and Waffle House, are now available on Olo’s new consumer ordering app for pickup or third-party delivery.
  • A 5% network fee replaces the 15%-30% commissions common on DoorDash, Uber Eats and Grubhub, letting restaurants keep menu prices lower because they do not need markup to cover app fees.
  • Restaurants also get direct access to customer order data through the app, while diners can manage how that information is used for marketing and communications.
  • Olo plans to expand from 250 brands to its 800-plus restaurant customers and eventually beyond, using a campaign built around the claim that many diners have already ordered through Olo without knowing it.
  • The launch pushes Olo from back-end ordering software into a consumer-facing role after processing orders for more than 100 million unique customers annually and going private in a $2 billion Thoma Bravo deal last year.

Insights

Can Olo's commission-free app truly disrupt giants like DoorDash, or will hidden network fees quietly erase the promised consumer savings?
Will diners actually abandon their favorite delivery apps for cheaper menus, or does the convenience of established giants always win?