Our Dispatch module enables restaurants to automatically select the optimal delivery provider for an individual order based on dozens of attributes, such as delivery time, order size or value, cost of delivery, or service level, for each individual order at each individual location. Olo Dispatchĭispatch creates a marketplace of last-mile delivery options for the restaurant. Olo has two other modules (that 71% of its customers own) that make it more of a multi-sided platform. If Olo was just a SaaS application for helping restaurant chains provide an e-commerce front-end for consumers, it would be a B2BC portal. Our platform and application programming interfaces, or APIs, seamlessly integrate with a wide range of solutions, unifying disparate technologies across the restaurant ecosystem. …restaurants with a business-to-business-to-consumer, enterprise-grade, open SaaS platform to manage their complex digital businesses and enable fast and more personalized experiences for their customers. In fact, one way to think about Olo is as the chain restaurants’ strategy to fight back against these aggregators and put the restaurant chain brand back at the center of the customer experience. The article highlights several companies helping independent restaurants avoid the commissions levied by DoorDash and UberEats. But these companies take big margins (20%+) as I wrote about here.Īs the Wall Street Journal recently pointed out restaurants are fighting back. DoorDash and UberEats want you to go to their sites to order and arrange delivery, thus disintermediating the restaurant. ( My emphasis added.)Īs you also know, there is a pitched battle over who will own the platforms for restaurant ordering and delivery.

Even prior to the COVID-19 pandemic, that was expected to increase to 10% in 2020. The average portion of total sales from third-party delivery in the 12 months ending August 2019 was 6.5%. Meanwhile, delivery continues to grow as a percentage of sales. We then either pick the food up, have it delivered by the restaurant itself, or use a delivery service partner (DSP) to deliver the food.Įven before the onset of the COVID-19 pandemic, off-premise consumption accounted for 60% of restaurant orders in 2020, and was expected to contribute 70% to 80% of total restaurant industry growth in the next five years, according to the National Restaurant Association. Unless you are Rip Van Winkle (or never eat out), you know that we don’t go to restaurants anymore, we order from them online.

Quick Background on Restaurant Ordering and Delivery I also want to shed some light on why Olo is profitable–since that is so rare these days. Instead, I want to discuss Oro in the context of multi-sided platforms. You can read a thorough analysis of Olo’s SaaS metrics relative to those of other public SaaS companies here. It is a fascinating business in a dynamic market–online food ordering and delivery. Olo, a multi-sided platform for the chain restaurant industry filed its S-1 last week.

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