Shop Stock: Is OLO the Best IPO of 2021? Here’s What You Need to Know
In this video, I’ll be talking about newly IPO’d OLO (NYSE: OLO) (which stands for Online Ordering). Olo in a way could be viewed as the Shopify for restaurants as it allows physical restaurants to have a digital presence and manage their business more efficiently by using its own modules.
Olo offers 3 core products/modules: Ordering, Dispatch & Rails. As of December 2019 and 2020, 44% and 71% of OLO’s customers used all three of their modules, respectively.
How Do They Make Money?
They refer to their business model as a transactional SaaS model as it includes both subscription and transaction-based revenue streams, and it’s designed to align with its customers’ success.
Just as Roku doesn’t directly compete with Netflix, Amazon Prime, etc. Olo too does not directly compete with consumer-facing brands such as GrubHub, Uber Eats or Delivery.com. But it is competing with companies that offer their own POS systems to restaurants, such as Square, NCR, and probably more.
Olo has been doing very well even before the pandemic, it actually doubled GMV in the past 7 years. The pandemic has definitely accelerated its growth plans but that does not mean it’ll stop growing any time soon.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Fintech Zoom’s board of directors. Neil Rozenbaum owns shares of Amazon, Olo Inc., and Shopify. The Fintech Zoom owns shares of and recommends Amazon, Netflix, Roku, and Shopify. The Fintech Zoom recommends Uber Technologies and recommends the following options: long January 2022 $1920.0 calls on Amazon and short January 2022 $1940.0 calls on Amazon. The Fintech Zoom has a disclosure policy. Neil is an affiliate of The Fintech Zoom and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Fintech Zoom.
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