Olo and DoorDash are back on good terms.
The online ordering company and its largest customer on Thursday agreed to a new, three-year contract and put an end to their dispute over fees.
The delivery company in October sued Olo, alleging that it had breached their contract by charging DoorDash higher transaction fees than those assessed to other providers. DoorDash sought $7 million in damages; Olo said the allegation was without merit.
The new agreement includes the dismissal of those claims, without any payments by Olo to DoorDash. The contract, which has an optional fourth year, will see the two companies continue working together on new products and features.
“Today’s announcement of a multi-year collaboration with DoorDash reflects our commitment to best serve the restaurant industry,” said Marty Hahnfeld, chief customer officer of Olo, in a statement. “We look forward to our continued partnership over the years ahead.”
The litigation lent a bitter aftertaste to Olo's soaring initial public offering in March. DoorDash is Olo's largest and most important partner, accounting for 19.3% of its overall earnings in 2020, according to Olo's IPO documents.
Olo is one of the leading tech providers in the industry, offering restaurants services such as online ordering and delivery integration.
Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.