Olo
OLO | Market Cap: $1.7B (09/11/25)
Industry:
Software

DESCRIPTION

Olo is a software platform built exclusively for restaurant brands, powering their digital ordering, payment processing, and guest marketing programs. Olo sells to restaurant brands at the corporate level, which allows it to deploy across all of a brand's locations — including franchisee-operated ones — without a separate sales process for each location. As of year-end 2024, Olo served more than 750 brands across roughly 86,000 active locations. Olo's platform is organized into three suites: Order (digital ordering and delivery operations, including white-label apps, web ordering, kiosk interfaces, and third-party marketplace connectivity), Pay (integrated payment processing for both online and in-restaurant transactions), and Engage (guest data and marketing automation tools). Olo argues these three suites form a "flywheel" — Order and Pay generate guest data that powers Engage's personalized marketing, which in turn drives more Order and Pay transactions. Olo generates revenue through subscriptions (fixed monthly fees per location for platform access) and transaction fees (primarily a percentage of payment volume through Olo Pay, plus fees for marketplace connectivity). Near-term growth levers include expanding Olo Pay into card-present (in-restaurant) transactions — a much larger opportunity than online payments — increasing the number of modules used per location (currently 3.7 out of 16 available), and growing its Catering+ module targeting the workplace and event catering market. Contracts run three years or longer with automatic renewals, and gross revenue retention has been above 98%.

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