Olo Resolves Contract Dispute With DoorDash; Signs Multi-Year Agreement
Olo Inc has resolved its contract dispute with DoorDash and has agreed to terms of a multi-year agreement.
Olo Inc (OLO) provides a Software-as-a-Service(SaaS) platform for multi-location restaurants in the U.S. The company listed on March 17. DoorDash operates a logistics platform and marketplace that helps merchants at different stages of customer acquisition, delivery, analytics, payments as well as with customer support.
The new agreement between the two companies will enable them to work together on developing products and features, in turn, unlocking value for both themselves and their shared merchant base.
Olo Chief Customer Officer Marty Hahnfeld said, “Today’s announcement of a multi-year collaboration with DoorDash reflects our commitment to best serve the restaurant industry. We look forward to our continued partnership over the years ahead.” (See Olo stock analysis on TipRanks)
DoorDash Chief Revenue Officer Tom Pickett said, “We are pleased to have resolved this matter and continue to work together for the benefit of our merchants.”
On April 12, RBC Capital analyst Matthew Hedberg initiated coverage on the stock with a $32 price target (7% upside potential).
Hedberg sees the opportunity to consolidate spending in the global on-demand restaurant commerce market as a $40 billion opportunity for Olo. Hedberg also sees opportunity for gaining “additional greenfield share”, along with a boost from future product launches.
Consensus on the Street is that Olo is a Moderate Buy based on 5 Buys and 2 Holds. The average analyst price target of $32 implies upside potential of 7%. Shares have dropped about 4.8% over the past month.
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