LinkedIn post: Olo just launched a marketplace app to compete with DoorDash
Toast tried this. it’s called Toast Local. you’ve probably never heard of it.
(im half joking.. im a big fan of Toast)
anyway, there’s a reason for that. and i’ve seen it before.
i worked on hyperlocal restaurant marketplaces at LevelUp and Ritual.co
two companies, same lesson:
the only metric that actually moves a consumer marketplace is supply density and quality.
not the technology. not the commission structure. not the brand.
if a guest opens the app and their favorite spots aren’t there, they close it and open DoorDash
both Olo Network and Toast Local have a supply wall baked into their model. Olo is Olo customers only. Toast Local is Toast restaurants only.
DoorDash onboards anyone with a menu. that’s not a small advantage. that’s the whole game.
the second wall is last mile. Toast routes through Uber and DoorDash for delivery fulfillment. Olo does the same. so “commission-free” is real on the ordering layer, but the delivery fee still lives underneath it.
you didn’t escape 3P economics. you moved one layer up.
these products are genuinely useful as retention channels. if a guest already knows you, cheaper order capture with data ownership is real value.
but new demand requires supply density. supply density requires onboarding restaurants outside your POS install base. and that’s a different business entirely.
Olo will find out what Toast now knows
the hard part was never building the app