Olo (online ordering) explained

Olo Inc.
Type:Public
Foundation: in New York City, U.S.
Location:One World Trade Center, New York City, U.S.
Industry:Internet, Mobile, Restaurants
Key People:Noah Glass, Founder & Chief Executive Officer
Revenue: (2021)
Operating Income: (2021)
Net Income: (2021)
Assets: (2021)
Equity: (2021)
Num Employees:639 (December 2021)
Footnotes:[1]

Olo is a New York City-based B2B SaaS company that develops digital ordering and delivery programs for restaurants. The company’s platform allows customers to place restaurant orders from multiple origination points – from a brand’s own website or app, third party marketplaces, social media platforms, smart speakers, and home assistants. It also provides restaurants with order analytics and other services.[2]

History

Olo was founded as GoMobo in 2005 by Noah Glass in New Haven.[3] [4] Its initial product was a mobile phone app that allowed users to pre-order food via text message from coffee shops for pick-up.[5] [6]

In 2010, the company changed its name to Olo ("online ordering") to reflect its change from being a customer-facing application to being a B2B software company, "invisible" to customers,[7] used by restaurants to manage mobile device orders.[8]

Fortune reported in 2015 that restaurants using Olo software had served approximately 10 million customers.[9]

In 2017, Shake Shack launched the Shake App created by Olo; other restaurant brands using Olo software include Denny’s and Wingstop.[10]

In 2019, Olo formed a partnership with Google to provide the interface between Google Search and other Google applications to connect customers with local restaurants, allowing them to place orders directly, without using third-party ordering apps such as DoorDash and Postmates. ChowNow, a competitor B2B restaurant order-management SaaS company, has a similar arrangement with Google.[11]

On March 17, 2021, Olo went public on the New York Stock Exchange and its IPO raised approximately $450 million.[12]

In October 2021, Olo announced its acquisition of Wisely, a customer intelligence platform that uses consumer data to personalize online ordering.[13]

In February 2022, Olo launched a service called Olo Pay which enables customers to make one-click online purchases from any restaurant in Olo’s network.[14] In February 2022, Olo acquired Omnivore, a company that developed technology services for restaurants.

Starting in August 2022, Olo stock plunged as restaurants delayed deploying their ordering software.[15] Following the drop in Olo’s share price, several law firms filed what Restaurant Business described as “stock-drop suits”, a common type of lawsuit following a substantial drop in a public company’s share prices where lawyers for investors attempt to show that the company intentionally withheld information related to the price fall from its shareholders.[16] [17]

In July 2023, Jo Lambert was named the chief operating officer (COO).[18]

Funding

The company has raised funds from Founder Collective,[19] RRE Ventures, Core Capital, PayPal, Staley Capital, The Raine Group, Danny Meyer (CEO of Union Square Hospitality Group), and private investors.[20]

In January 2020, Bloomberg News reported that Olo might be seeking an IPO with a valuation of $1 billion.[21] Those plans were put on hold due to COVID-19. The company went public in March 2021[22] with a valuation of $3.6 billion.[23]

Notes and References

  1. Web site: Olo Inc. 2021 Annual Report (Form 10-K) . 25 February 2022 . U.S. Securities and Exchange Commission.
  2. Web site: Marston . Jennifer . Google and OLO Partner to Give Restaurants More Control of Their Data . thespoon.tech . The Spoon . 7 January 2021 . October 2, 2019.
  3. Web site: David Muir . Texting Food Orders Makes Cutting In Line OK . ABC News . 20 September 2006.
  4. News: Ali . Sarmad . Text Messaging Speeds Up Fast-Food Orders; Cellphones, Web Services Let Customers Skip Lines; Idea Is Still in Early Stages . Wall Street Journal . Dow Jones & Company Inc . 20 September 2006 . D4 . Mobo Systems Inc., which has deals with 24 restaurants in New Haven, Conn., and New York.
  5. Web site: Malynkha . Elena . Pizza Hut Adds Cell Phones To Ordering Service . Information Week . Informa PLC Informa UK Limited . 11 January 2021 . January 17, 2008.
  6. Web site: Alexander Wolfe . GoMobo Brings Fandango-Like Advance Ordering To Your Morning Coffee Run . Information Week . 1 November 2007 .
  7. Web site: Little . Kate . This CEO Passed Up Harvard Law School to Make a Huge Bet on Smart Phones . CNBC.com . CNBC. LLC . 7 January 2021 . June 6, 2016.
  8. Web site: GoMobo changes name to reflect offerings . QSRweb.com . Networld Media Group . 11 January 2021 . December 5, 2010.
  9. Web site: Exclusive: Tech firm Olo claims 10 million users. Fortune. 2015-11-12.
  10. Web site: Zetlin . Minda . Amazon May Soon Bring You a Shake Shack Burger in Under an Hour . Inc.com . September 22, 2017.
  11. Web site: Luna . Nancy . Google, Olo partnership gives restaurants control of consumer data . Nation's Restaurant News . Informa USA . 11 January 2021 . October 1, 2019.
  12. News: Lucas . Amelia . RESTAURANTS Restaurant tech firm Olo shares soar 39% in IPO as online ordering surges . 7 December 2022 . CNBC . 17 March 2021.
  13. News: Fantozzi . Joanna . Olo is acquiring software solution platform Wisely for $187 million . 14 December 2022 . Nation's Restaurant News . 21 October 2021.
  14. News: Guszkowski . Joe . OLO LAUNCHES PAYMENT SERVICE, ACQUIRES POS INTEGRATOR OMNIVORE . 14 December 2022 . Restaurant Business Online . 23 February 2022.
  15. Web site: Olo Shares Plummet On After Q2 Revenue Fall Short Of Estimates, Lowered FY Guidance . Benzinga . Aug 11, 2022.
  16. News: Guszkowski . Joe . OLO IS LOSING ITS SUBWAY BUSINESS, DRAWING SHAREHOLDER LAWSUITS . 8 December 2022 . Restaurant Business . 17 August 2022.
  17. News: Miranda . Janet . Olo Investor Sues Over Nondisclosure of Subway Partnership End . 8 December 2022 . Bloomberg Law . 27 September 2022.
  18. Web site: Banks . Jarrett . 2023-06-14 . OLO Reshuffle Sets Company Up for Massive Opportunities Ahead . 2024-04-24 . . en-US.
  19. Web site: OLO On Mobile Restaurant Ordering: 'We Want To Be The Amazon Of Food'. Forbes. 2015-11-12.
  20. Web site: Roof . Katie . Olo Raises $40 Million To Expand Delivery Business . TechCrunch.com . Yahoo . 21 September 2023 . January 21, 2016 . Olo previously raised at least $23 million in funding from RRE ventures, PayPal, Founder Collective and famed restaurateur Danny Meyer..
  21. Web site: Tse . Crystal . Baker . Liana . Food Software Startup Olo Is Said to Plan U.S. IPO in 2020 . Bloomberg News . Bloomberg L.P. . 11 January 2021 . January 6, 2020.
  22. Web site: Ruggless . Ron . Olo CEO Noah Glass sees IPO strengthening platform’s independence . Nations Restaurant News . Informa USA . 31 May 2021 . March 17, 2021.
  23. Web site: Lucas . Amelia . Restaurant tech firm Olo shares soar 39% in IPO as online ordering surges . CNBC.com . CNBC LLC . 28 June 2021 . March 17, 2021.

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