Olo, a food-ordering software company where Shake Shack founder Danny Meyer sits on the board, is planning a US initial public offering this year, according to people with knowledge of the matter.
The New York-based company could seek a valuation of about $1 billion in an IPO, said one of the people, who asked not to be identified because the information is private. Olo, whose name is derived from “online ordering,” interviewed potential advisers around the end of 2019, the people said.
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No final decision has been made and its plans could change, the people said. An IPO could raise at least $300 million, one of the people said.
A representative for Olo declined to comment.
Olo’s software powers loyalty programs and allows restaurants to manage orders and set customised menus, according to its website. Olo partnered with Uber Technologies Inc. in June 2019 to allow consumers to place Uber Eats orders directly into restaurants’ systems, according to a press release.
Other customers include restaurant chains such as Five Guys Holdings, California Pizza Kitchen and The Cheesecake Factory.
Food delivery services have been a focal point of the IPO market for the past year. Postmates said in February that it had filed confidentially to go public. Uber Eats was touted as a key vehicle for growth in Uber’s $8.1 billion listing last May. DoorDash has been considering bypassing an IPO in a direct listing, people familiar with its plans have said. Olo also has partnerships with DoorDash and Postmates.
Olo was founded in 2005 as a text-message food-ordering service. It received a $40 million investment from the Raine Group in 2016 and $18 million from Tiger Global Management last year, according to company statements.
The software company announced last year that it was working with Alphabet’s Google to enable customers to order directly from restaurants via Google Searches.
Meyer, chief executive officer of Union Square Hospitality Group, joined Olo’s board in 2015, according to a statement at the time.
© 2020 Bloomberg L.P.