Please ensure Javascript is enabled for purposes of website accessibility

Is OLO the Best IPO of 2021? Here's What You Need to Know

By Neil Rozenbaum - Mar 30, 2021 at 9:00AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This stock could be the Shopify for restaurants.

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 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.



Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Olo Inc. Stock Quote
Olo Inc.
$11.15 (2.29%) $0.25

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/21/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.