Olo, one of our incumbents in the online ordering software space, has partnered with Lyft, the second largest ride-hailing company in the US, to deliver restaurant food. Through the partnership, Lyft drivers will deliver online orders for Olo’s network of restaurants, generated through the restaurant’s website or app, through the Olo Dispatch solution. Olo already has partnerships in place with DoorDash, Grubhub, and Uber Eats for its Dispatch service.

Olo’s solution will select service providers, including in-house couriers, based on optimal price, timing, availability, and other criteria. Unlike its competitors, Lyft will not have an app or a marketplace and plans to operate as a last-mile delivery service, charging a fee to the customer on each order, thereby reducing delivery costs for restaurants.

Ride-hailing services were hit due to the pandemic; however, with the addition of food delivery services, Lyft aims to boost its revenue. Adding restaurant delivery channels will also allow Lyft to attract more drivers outside of ride-sharing. Lyft aims to expand its delivery reach by increasing its driver supply, which was up by 45% in Q3 2021.