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

Rhea-AI Summary

Grubhub and Olo (NYSE:OLO) expanded their partnership on January 16, 2025 to integrate Grubhub into Olo Dispatch. The integration lets restaurants outsource delivery for orders from their own websites and apps using Grubhub alongside other third-party providers. Olo Dispatch auto-matches providers by price, timing, and availability and integrates with POS and kitchen systems to speed fulfillment and scale delivery nationally. The move complements Grubhub's On-Demand and Supplemental Delivery options and aims to give brands more control over direct ordering and customer relationships.

Insights

Strategic Partnerships Analyst

Grubhub and Olo expanded integration to let restaurants route direct orders to Grubhub via Olo Dispatch, widening delivery options and distribution reach.

By adding Grubhub as a selectable provider within Olo Dispatch, restaurants can outsource delivery for orders from their own websites and apps while keeping POS and kitchen integrations intact. The mechanism uses Olo's automated matching to choose providers by price, timing and availability, enabling brands to scale delivery nationally without separate engineering for each courier.

Execution depends on two facts: merchants adopting Dispatch for direct channels and Grubhub performing to Dispatch's selection criteria. Risks include variable local coverage, service-level consistency across third-party couriers, and merchant willingness to route orders away from proprietary logistics. These are operational, not legal, dependencies.

Watch for merchant rollout metrics and adoption rates over the next quarters, any disclosed integration cadence around Jan. 16, 2025, and statements about national coverage gaps or pricing changes; those items will indicate material commercial impact within one to two fiscal quarters.

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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/grubhub-expands-delivery-services-with-olo-dispatch-to-support-merchants-across-direct-ordering-channels-302352513.html

SOURCE Grubhub

FAQ

What did Grubhub and Olo announce on January 16, 2025 regarding Olo Dispatch and OLO stock?

They announced integration of Grubhub into Olo Dispatch, allowing restaurants to use Grubhub for deliveries of orders placed on their own channels.

How does the Grubhub integration with Olo Dispatch affect restaurant POS systems?

Olo Dispatch integrates with POS and kitchen systems so orders matched to Grubhub are routed and fulfilled within existing restaurant workflows.

Can restaurants use Grubhub only for some orders via Olo Dispatch?

Yes; Olo Dispatch selects providers on a per-order basis, so restaurants can outsource delivery to Grubhub for individual orders.

What benefits did Olo and Grubhub cite for restaurants using Dispatch with Grubhub?

They cited faster order fulfillment, cost-efficient matching by price and timing, national scale deployment, and stronger direct customer relationships.

Does this announcement change Grubhub's existing On-Demand or Supplemental Delivery services?

No; the integration joins Grubhub's existing On-Demand Delivery and Supplemental Delivery options as an additional Dispatch provider.

Where can investors find more information about Grubhub delivery services mentioned in the Olo Dispatch integration?

The release directs readers to Grubhub's delivery services page for more details on the company's delivery offerings.