This new food delivery service is trying to take on DoorDash and Uber Eats by offering no menu markups

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Alex Bitter

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A new food delivery service is taking aim at menu mark-ups — and some entrenched rivals

Restaurant ordering software company Olo is launching its own customer-focused app, it said on Tuesday. The app puts it in competition with more established delivery companies, such as DoorDash and Uber Eats.

On Olo's app, customers will see the same prices that restaurants charge in-person patrons, the company said. By contrast, third-party delivery services often charge customers higher menu prices than diners would get at a restaurant.

Offering in-store prices can save customers between 15% and 30%, Olo said.

"It's a better experience for consumers and a more sustainable model for restaurants, with no menu price inflation and no barriers standing between great brands and the people and communities they serve," Olo CEO and founder Noah Glass said.

Food delivery is one area where consumers continue to spend money, even as they cut back their budgets elsewhere. How much customers pay for delivery — and whether apps charge individuals different prices or the same order — can affect how often they order.

Olo is stepping into a competitive space. DoorDash and Uber Eats continue to grow, including by rearching into club deliveries and catering. And Walmart, which spent years building its own grocery-focused delivery service, started delivering restaurant orders earlier this year.

Olo got its start in 2005 with a service that let users text their orders to restaurants in the pre-smartphone era. Now, the company fields about 3.5 million orders daily through around 800 restaurant brands.

The company doesn't have its own team of delivery drivers. Instead, the company uses its own dispatch service to compare delivery options at other third-party services, such as Grubhub, and pick one based on factors like cost and speed.

Olo's delivery app will allow customers to order from about 250 restaurants, including Five Guys and Dave's Hot Chicken.

Do you have a story idea about Uber Eats, DoorDash, or another delivery service? Contact this reporter at [email protected] or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

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Alex Bitter

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Alex Bitter is a senior retail reporter covering Uber, Lyft, DoorDash, Instacart, and related companies. His coverage ranges from the experiences of gig workers to what's happening inside the world's biggest ride-hailing and delivery companies.Alex has also written about the retail and food industries. Convenience store chain Sheetz ended its "smile policy" after his reporting. Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at [email protected] or via encrypted messaging app Signal at +1 (808) 854-4501.

• Delivery
• Restaurants
• Consumer spending
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