Olo Launches New Food Delivery App to Fight Menu Markups
A new nationwide delivery application aims to eliminate hidden fees and inflated menu prices by utilizing a flat 5 percent service fee and matching in-store costs.
Radwan AbdulhadiEditor and technology writer
A New Competitor in Digital Ordering
Popular food delivery applications have long faced criticism for charging restaurants steep marketplace commissions, expenses that frequently pass down to consumers through inflated menu costs and shifting fees. To combat these pricing practices, Olo is launching a new consumer-facing application nationwide on Android and iOS.
Noah Glass, founder and CEO of Olo, points out that restaurants often pay 20 to 30 percent commissions to major marketplaces, offsetting those costs by raising prices for users who want to grab dinner online.
Flat Fees and In-Store Pricing
The core selling point of the newly launched application is its refusal to use traditional menu markups. On Olo, participating restaurants charge users the exact same menu price posted in-store.
Instead of variable marketplace markups, the platform charges a flat 5 percent service fee. Customers still pay a separate fee for delivery, but the application is designed to provide a middle ground for consumers seeking the convenience of a streamlined digital ordering experience without unpredictable surcharges.
Streamlined Interface Without Sponsored Listings
In addition to addressing pricing concerns, the platform tackles another common frustration in modern digital ordering: incessant ads and sponsored search results. The interface presents a clean, streamlined list of nearby restaurants available on the service, alongside past items for quick reordering.
The newly debuted application launches with 250 brands available to consumers, with concrete plans to expand its restaurant offerings moving forward.
Deep Roots in Digital Restaurant Infrastructure
While the consumer-facing app is brand new, the company behind it is an established player in restaurant software. Noah Glass has worked in the digital ordering sector for over two decades, having initially launched a startup called Mobo in 2005 before the iPhone existed to facilitate coffee shop orders via text messages.
Mobo eventually transitioned into Olo, operating largely as a behind-the-scenes technology facilitator that helps restaurants process digital menus across desktop sites, smartphones, and kiosk touchscreens. Olo's underlying infrastructure currently assists customers in placing more than 3.5 million orders every day.
The Challenge Ahead
Convincing users to shift away from long-standing delivery platforms they have used for years remains a significant hurdle. Nevertheless, Glass enters the consumer market with deep industry connections and a clear strategy focused on targeting the inflated prices that characterize major competitors.
Sources
- WIREDThis New Food Delivery App Could Be the Antidote to Menu Markups
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