And where it gets really exciting is that Amazon Restaurants can be used with Alexa, allowing users to simply say their order out loud and have it arrive shortly after. Their most recent service offering Rails, is an extension of the same control of ordering to the third-party consumer destinations such as Amazon Restaurants. The real question is whether Olo’s customer base will want to work with Amazon.
Amazon began a one-hour restaurant delivery service in Seattle in 2015 and has been expanding it to other cities around the country. Customer orders entering the system from the newly integrated Amazon Restaurants will reduce confirmation and response times – and the likelihood of manual errors.
The service is another way for Amazon to expand its physical presence.
Olo CEO and founder Noah Glass said a huge race is on in relation to companies launching delivery services in the marketplace and deals such as this one between Olo and Amazon give access to a wide swath of today’s restaurant market that includes top brands in the industry. Amazon shares were little changed, trading at $962.78 as of 10:38 a.m.in NY. The market for fast-food delivery orders placed through mobile apps was about $10 billion in 2016 and is expected to surpass $35 billion by 2020, according to research from Cowen & Co.
That service will be available in Cincinnati, Chicago, Columbus, L.A., Minneapolis, New York, Phoenix, Portland, Richmond, San Diego, San Francisco and Seattle, according to Grub Street.
Shares of GrubHub Inc. sank as much as 7.3% just minutes after Friday’s open before recovering slightly, fellow online food ordering company Olo said it was teaming up with Amazon Inc. making it easier for Olo’s customers to integrate with Amazon Restaurants. As more people look to order food online, Glass thinks Olo’s clients will increasingly sign up to use Amazon Restaurants.
It’s big news for anyone who’s been too lazy to drive out for a carnitas burrito or cheesebuger and extra fries.