Olo, the digital ordering business, has raised $40 million in funding from The Raine Group. The capital will be used to expand its recently launched Dispatch delivery service.
With over 150 restaurant groups as clients, New York-based Olo works with large chains, including Chipotle, Five Guys and Jamba Juice, to power their online ordering and pick-up business. Olo provides the white label software that integrates with its in-store point-of-sale (POS) payments system and the website checkouts. (It has similarities to some Square offerings, but Olo has focused on larger chains, whereas Square has gained traction with mom-and-pop shops).
After 10 years in the order pick-up business, Olo is hoping to leverage its existing clients to master the delivery business. Olo wants to be the “Kayak.com for delivery,” founder and CEO Noah Glass tells TechCrunch. “Dispatch will reach out to a number of different delivery providers, including Uber and Postmates. It will find a driver that will get it there the fastest and the cheapest.”
Founded in 2005, some say that Olo was ahead of its time, and gained more traction in recent years. While Glass tells TechCrunch that they’ve had nearly 100% customer retention, they are not quite ready to go public.
“It took the restaurant industry sometime to warm up to what we do,” said Glass. “We’re not in any rush to do an IPO.”
Olo previously raised at least $23 million in funding from RRE ventures, PayPal, Founder Collective and famed restaurateur Danny Meyer.