Grubhub Expands Delivery Services with Olo Dispatch to Support Merchants Across Direct Ordering Channels

Rhea-AI Summary

Grubhub and Olo have expanded their partnership by integrating Grubhub with Olo Dispatch, enabling restaurants to outsource delivery for orders placed through their own websites and apps. This builds upon their existing collaboration where Grubhub orders are sent directly to restaurants' point-of-sale systems via Olo Rails.

Olo Dispatch's automated matching technology selects optimal service providers based on price, timing, and availability, allowing restaurants to deploy delivery at a national scale while maintaining direct customer relationships. The integration complements Grubhub's existing On-Demand Delivery and Supplemental Delivery services.

The partnership aims to help merchants manage delivery operations more efficiently, reduce costs, and meet growing customer demands for digital ordering and delivery across both third-party and owned channels while providing more earning opportunities for Grubhub's delivery partners.

Positive

• Integration with Olo Dispatch expands Grubhub's service offering and market reach
• Creates new revenue stream through per-order delivery services
• Strengthens competitive position in the delivery marketplace

Negative

• None.

Insights

Financial Analyst

The strategic expansion of Grubhub's partnership with Olo through Dispatch integration represents a calculated move to capture a larger share of the direct-to-consumer delivery market. By enabling restaurants to leverage Grubhub's delivery network for orders placed through their own channels, this creates a new revenue stream while potentially reducing customer acquisition costs. The integration with Olo's POS systems should drive operational efficiencies and cost savings for restaurants through automated dispatch optimization.

From a competitive standpoint, this positions Grubhub as both a marketplace and infrastructure provider, diversifying revenue streams beyond traditional commission-based models. The move mirrors industry trends where delivery platforms are evolving into broader technology service providers. The partnership could help Grubhub maintain market relevance amid intense competition from DoorDash and Uber Eats while creating stickier relationships with restaurant partners.

Market Research Analyst

This partnership addresses a critical market need for restaurants seeking to maintain direct customer relationships while accessing reliable delivery infrastructure. Data shows that restaurants typically earn higher margins on direct orders compared to third-party marketplace orders. By enabling restaurants to utilize Grubhub's delivery network for their direct channels, this integration helps optimize delivery costs while preserving valuable customer data and relationships.

In simple terms, imagine a restaurant wanting to offer delivery through their own website but lacking delivery drivers. This partnership lets them use Grubhub's drivers while keeping the customer relationship. This creates a win-win situation where restaurants maintain control of their brand experience and customer data, while Grubhub generates additional revenue from delivery fees without the usual marketplace commissions.

Tech Expert

The technical integration between Grubhub and Olo's Dispatch platform represents a sophisticated implementation of logistics optimization. Olo's automated matching technology utilizes complex algorithms to select optimal delivery providers based on multiple variables including cost, timing and availability. The direct integration with restaurant POS systems enables seamless order flow and real-time delivery dispatch, reducing operational friction and potential errors.

For the average person, think of this like having a smart traffic controller that automatically picks the best delivery driver based on who's available, how much they charge and how quickly they can deliver. This system helps restaurants save money and get food delivered faster by always choosing the best option available at that moment.

More merchants can now leverage Grubhub's delivery network on a per order basis

CHICAGO and NEW YORK, Jan. 16, 2025 /PRNewswire/ -- Grubhub, a leading U.S. food ordering and delivery marketplace, and Olo (NYSE:OLO), a leading restaurant technology provider, have expanded their partnership to integrate Grubhub with Olo Dispatch. With Dispatch, restaurants can outsource delivery for orders generated through their own website and apps leveraging a network of third-party delivery service providers, now including Grubhub. This integration builds on Grubhub and Olo's existing relationship where Grubhub orders are directly sent to restaurants' point-of-sale system via Olo Rails.

Olo Dispatch seamlessly selects service providers, including in-house couriers, based on optimal price, timing, availability, and other criteria. Olo's automated matching technology enables restaurants to get orders out the door and into the hands of customers faster and in the most cost-efficient way. With Dispatch, brands can quickly deploy delivery at a national scale with integration into their POS and kitchen production systems. This allows brands to strengthen direct relationships with their customers while offering a convenient and branded delivery experience through their own channels.

"As demand for digital ordering and delivery grows across third-party and owned channels, we're proud to expand how we support our merchant partners and create more earning opportunities for Grubhub's delivery partners," said Kyle Emmett, senior director of retail media and merchant solutions at Grubhub. "With our nationwide delivery network, we help merchants manage their delivery operations, reduce costs, and better meet customer demands."

"At Olo, we always strive to do what's best for our customers, and adding a great partner like Grubhub to our Dispatch network is a perfect example," said Kacie Gonzalez, vice president of product partnerships at Olo. "Giving restaurant brands more delivery service provider options gives them more flexibility, reliability, and competitive pricing, while allowing them to grow their direct ordering channels and own their guest relationships."

This integration with Olo Dispatch joins Grubhub's On-Demand Delivery and Supplemental Delivery services that help restaurants easily scale up their delivery operations when it's needed most. For more information on Grubhub's delivery services, visit here.

About Grubhub
Grubhub is a leading U.S. ordering and delivery marketplace dedicated to connecting customers with their favorite local restaurants, merchants and convenience retailers. Grubhub elevates online ordering through innovative restaurant technology, easy-to-use platforms, and an improved delivery experience. Part of Wonder Group, Grubhub features 375,000 merchants in over 4,000 U.S. cities.

About Olo | Hospitality at Scale™
Olo (NYSE: OLO) is a leading restaurant technology provider with ordering, payment, and guest engagement solutions that help brands increase orders, streamline operations, and improve the guest experience. Each day, Olo processes millions of orders on its open SaaS platform, gathering the right data from each touchpoint into a single source—so restaurants can better understand and better serve every guest on every channel, every time. Over 700 restaurant brands trust Olo and its network of more than 400 integration partners to innovate on behalf of the restaurant community, accelerating technology's positive impact and creating a world where every restaurant guest feels like a regular. Learn more at olo.com.

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SOURCE Grubhub

FAQ

What does the Grubhub-Olo Dispatch integration mean for restaurants using GRUB?

The integration allows restaurants to use Grubhub's delivery network for orders placed through their own websites and apps, helping them manage delivery operations more efficiently and reduce costs.

How does the Olo Dispatch integration affect GRUB's delivery service offerings?

It adds to Grubhub's existing On-Demand Delivery and Supplemental Delivery services, providing restaurants more flexibility in managing their delivery operations.

What benefits does the GRUB-Olo partnership bring to merchants?

Merchants gain access to automated delivery matching, national scale deployment, POS integration, and potentially lower delivery costs while maintaining direct customer relationships.

How will the Olo Dispatch partnership impact GRUB's delivery network?

The partnership creates more earning opportunities for Grubhub's delivery partners while expanding the company's reach in the delivery marketplace.