Olo made its public debut in mid-March and saw a 39% rally on the first day of trading. Since then, shares have given up these gains and are about 10% below their opening price. However, shares opened at $25 which was significantly above the company's expected range of $16 to $18. The company was able to raise $450 million at a $3.6 billion valuation.
Olo was founded in 2005 by Noah Glass. It started as a mobile app - GoMobo - that allowed users to order from coffee shops via text message. However, it eventually found more traction as a B2B software company that was used by restaurants to manage multiple orders, often with these orders coming from different places.
Olo's current iteration allows restaurants to receive orders from multiple origin points such as text messages, websites, apps, smart speakers, and other connected devices. It also provides analytics and other services to restaurants to better optimize their operations.
Olo has also partnered with Google
Stock Price Outlook
Olo has a much more harmonious working relationship with customers rather than the delivery apps which many consider being quite predatory since they eat away at margins. Additionally, these apps face some challenges especially as the labor market tightens, and people will start eating out more.
In contrast, Olo could face a near-term headwind from this, however, it is more connected to restaurants seeing more orders through digital channels which seems certain in the long-term. Olo counts many of the largest restaurants among its clients. Additionally, it has further room to grow especially as it looks to add grocery stores to its platform as well.