There’s really never been a better time to be in the food-delivery game.
If a company like Olo (OLO) was to ever go public, now would surely be the time. Olo is an online-ordering tech company that works with over 64,000 restaurants across 400 different brands and its software is able to integrate with over 100 different tech platforms. Pretty big stuff, given the unprecedented demand for food delivery.
And after growing its year-over-year revenue by 94% 2020, Olo made the move to Wall Street this week. After setting its original IPO price at around $16-$20, the New York-based tech company made its public debut on Wednesday at $25 a share. Olo ended its first trading session at $34.75, a gain of nearly 40%.
In its official IPO filing, the company justified going public saying it felt there was an opportunity to capitalize on what it calls “on-demand commerce”:
“As consumers have become accustomed to the immediate convenience of on-demand commerce, they are demanding the same digital experience from restaurants, placing significant pressure on restaurants to deploy solutions. This demand has only accelerated since the onset of COVID-19, as on-demand commerce has become a necessity for the majority of restaurants.”
Brendan Witcher, principal analyst with Forrester shares a similar sentiment, noting that Olo is well-positioned to profit from this growing trend, calling the IPO a “no-brainer”:
“Olo is benefitting from being the right company at the right place at the right time. Digitizing the delivery part of the restaurant business is a no-brainer when one looks at the areas digital has already transformed – online mobile ordering, out-/crowd-sourced delivery, and fast, reliable digital platforms that can operate at the speed of customer demand.”