In this video, I'll be talking about newly IPO'd OLO (OLO 2.29%) (which stands for Online Ordering). Olo in a way could be viewed as the Shopify for restaurants as it allows physical restaurants to have a digital presence and manage their business more efficiently by using its own modules.
Olo offers 3 core products/modules: Ordering, Dispatch & Rails. As of December 2019 and 2020, 44% and 71% of OLO's customers used all three of their modules, respectively.
How Do They Make Money?
They refer to their business model as a transactional SaaS model as it includes both subscription and transaction-based revenue streams, and it's designed to align with its customers' success.
Just as Roku doesn't directly compete with Netflix, Amazon Prime, etc. Olo too does not directly compete with consumer-facing brands such as GrubHub, Uber Eats or Delivery.com. But it is competing with companies that offer their own POS systems to restaurants, such as Square, NCR, and probably more.
Olo has been doing very well even before the pandemic, it actually doubled GMV in the past 7 years. The pandemic has definitely accelerated its growth plans but that does not mean it'll stop growing any time soon.