Olo launches consumer delivery app to challenge DoorDash and Uber Eats

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Olo launches delivery app

Highlights

Olo launched a consumer app offering in-store menu prices, claiming savings of 15% to 30% versus typical third-party delivery markups.
The new app increases competitive pressure on incumbents like DoorDash, Uber Eats, and Walmart amid resilient consumer delivery spending and demand for price transparency.
Olo's platform handles 3.5 million orders daily for 800 brands, and the new app initially features around 250 restaurants, leveraging third-party delivery networks for fulfillment.

App launch targets pricing gap

As first reported by Business Insider, Olo said on Tuesday that its new customer-facing app shows the same prices that restaurants charge diners in person, rather than adding menu markups often seen on third-party delivery platforms.

Olo said the in-store pricing model can save customers between 15% and 30%. Chief executive and founder Noah Glass said the approach offers a better experience for consumers and a more sustainable model for restaurants, with no menu price inflation and fewer barriers between restaurant brands and their customers.

The app puts Olo into more direct competition with established delivery groups including DoorDash and Uber Eats. Customer delivery spending remains relatively resilient even as households cut back in other areas, making price transparency and total order cost a key factor in how often people place orders.

Competitive pressure builds in delivery

Olo is entering a crowded market as larger rivals continue to expand their delivery operations, including into club deliveries and catering. Walmart, after building its grocery-focused delivery network for years, also began delivering restaurant orders earlier this year.

Founded in 2005, Olo started with a text-based restaurant ordering service before smartphones became widespread. The company now processes about 3.5 million orders a day across roughly 800 restaurant brands.

Olo does not operate its own driver fleet. Instead, it uses its dispatch service to compare delivery options from third-party providers such as Grubhub and select one based on factors including cost and speed. The new app will allow customers to order from about 250 restaurants, including Five Guys and Dave's Hot Chicken.

In our earlier coverage of Walmart’s inflation-driven momentum, we examined how the retailer is attracting budget-conscious consumers while investors focus on market share gains and improving margins. We also noted that Walmart’s push into digital services and delivery, including AI tools designed to increase basket sizes, is strengthening its competitive position as it expands beyond traditional retail.

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