Restaurant ordering software company Olo has launched a consumer delivery app that lets users order at in-store prices. [Photo: Olo]

U.S. restaurant ordering software company Olo has launched a food delivery app that offers the same menu prices as in stores. It is taking aim at the U.S. delivery market led by DoorDash and Uber Eats by highlighting that users can order without separate menu price increases.

Business Insider reported on Oct. 20 that Olo unveiled a consumer ordering app available across the United States. Users can find nearby restaurants on the app and place pickup or delivery orders.

The biggest feature is menu pricing. On existing delivery platforms, restaurants in some cases charge higher menu prices than in stores to account for high intermediary fees. Olo, by contrast, offers the same menu prices as in stores.

Olo said this could allow consumers to save 15 to 30 percent on order costs. It said the savings are not guaranteed on every order. Users are charged a network fee equal to 5 percent of the order amount, and a separate delivery fee may be added for deliveries.

Olo Chief Executive Noah Glass (Noah Glass) stressed that not raising menu prices would provide a better experience for consumers and would be a sustainable business model for restaurants.

At launch, more than 250 restaurant brands will participate, including Five Guys, Dave's Hot Chicken and Waffle House.

Olo started in 2005 as a service that let users place orders with restaurants by text message. It now provides ordering systems to about 800 restaurant brands and processes more than 3.5 million orders a day.

Olo does not operate its own delivery driver organization. Instead, through a dispatch system it compares fees and delivery speeds from external delivery companies such as Grubhub and selects a suitable provider.

Users can add frequently visited restaurants to favourites and can search for restaurants without being interrupted by ads or paid recommendation rankings.

Attention is focused on how many users Olo can win from existing delivery platforms by highlighting an operating model without intermediary fees and lower menu prices.

Keyword

#Olo #DoorDash #Uber Eats #Grubhub #Business Insider
Copyright © DigitalToday. All rights reserved. Unauthorized reproduction and redistribution are prohibited.