Uber Eats and DoorDash Have a New Rival — Here’s What It Won’t Charge You For

The food delivery landscape just got a little more interesting. Olo, a company that powers online ordering systems for many popular restaurant chains, has launched its own delivery app. What's notable about this move is that Olo's app won't charge restaurants a commission fee on orders, a common practice among rivals like Uber Eats and DoorDash. By not taking a cut of the order, Olo is positioning itself as a more attractive option for restaurants looking to reduce their reliance on third-party delivery services.

This is a savvy move by Olo, as restaurants have been growing increasingly frustrated with the commission fees charged by food delivery platforms. These fees can range from 10-30% of the order total, eating into restaurants' already thin profit margins. By offering a commission-free alternative, Olo is likely to appeal to restaurants looking to maintain control over their customer relationships and bottom line. It's also worth noting that Olo's app will still generate revenue, albeit through different channels, such as charging for additional services like marketing and data analytics.

As the food delivery market continues to evolve, it's clear that Olo is playing a long game. With its existing relationships with restaurant chains and its new commission-free model, Olo is well-positioned to gain traction in the market. Talent in the food tech and delivery spaces should keep an eye on Olo's growth and how it will impact the competitive landscape. Will Olo's approach force Uber Eats and DoorDash to rethink their commission-based models, or will the incumbents maintain their market share? One thing is certain – the food delivery wars are heating up, and it's going to be a wild ride.

Originally reported by entrepreneur.com. TalentNews adds analysis for business & startups readers.