Commission-free ordering apps: what Olo's launch costs you
For most of the delivery-app era, a restaurant had two ways to sell off-premise orders. It could take orders directly and pay little or no commission, or it could list on a marketplace and pay 15% to 30% for the reach. On October 20, 2026, Olo, the online ordering software company, started a third channel: a consumer app that charges restaurants no commission and bills the guest a network fee instead.
This article covers what launched, the per-order arithmetic, and how to use that arithmetic on your own channel mix even if you never join Olo.
What Olo launched
According to Nation's Restaurant News, the Olo App went live on October 20, 2026. It is a free customer app with more than 250 brands that already use Olo, including Five Guys, Waffle House, Noodles & Company, First Watch and Del Taco. The key terms, as reported:
- No commission for restaurants. Olo's own network page says "Every order through the Olo App is commission-free."
- In-store menu prices. Menu prices match what the guest would pay in the restaurant, because without a commission restaurants don't have to mark up items to cover one (NRN).
- The guest pays the fee. Consumers pay a 5% network fee to Olo, plus whatever delivery fee the restaurant sets. CEO Noah Glass told Restaurant Dive that the fee is shown at the top of the menu and at checkout: "We don't lump it in with taxes and service fees."
- Third-party drivers. Olo runs no fleet of its own. Its Dispatch tool sends each delivery order to the delivery services that cover that restaurant and picks the best quote. The drivers are often affiliated with DoorDash or Uber Eats (Restaurant Dive).
- Data comes to the restaurant. Olo says guest data "flows to you exactly as it would on a direct order" (Olo).
- Limited eligibility for now. The app is "initially available to existing Olo customers," with plans to open it to other restaurants later (Olo). No timeline has been published.
Glass also lowered expectations. Restaurant Dive reports he said the app is unlikely to change industry economics right away. Fast Casual quotes him: "It's day one; it's going to be imperfect."
Why it matters: off-premise is most of the business
Commission rates matter more each year because off-premise orders keep growing as a share of traffic. The National Restaurant Association's 2025 off-premises report found that off-premise traffic at full-service restaurants rose from 19% in 2019 to 30% in 2024. At limited-service restaurants it rose from 76% to 83%. When nearly a third of a full-service restaurant's guests never sit down, the fee on each off-premise order shapes margin for the whole restaurant.
The worked example: one $40 order, seven channels
The table below uses each company's published rates on a $40 food subtotal. The marketplace rates come from DoorDash's merchant page (Basic 15%, Plus 25%, Premier 30% on delivery; 6% on pickup) and Uber Eats' pricing page (Lite 20%, or lower in select cities; Plus 25%; Premium 30%; 7% on pickup with validated in-store pricing). Card processing, packaging and food cost are left out because they apply to every channel. Your own processing rate and any software fees you already pay still come off the top.
| Channel | Fee rate to restaurant | Fee on $40 | Restaurant keeps |
|---|---|---|---|
| Marketplace delivery, 30% tier | 30% | $12.00 | $28.00 |
| Marketplace delivery, 25% tier | 25% | $10.00 | $30.00 |
| Uber Eats Lite delivery | 20% | $8.00 | $32.00 |
| DoorDash Basic delivery | 15% | $6.00 | $34.00 |
| Uber Eats pickup | 7% | $2.80 | $37.20 |
| DoorDash pickup | 6% | $2.40 | $37.60 |
| Olo App or your own direct ordering | 0% commission | $0.00 | $40.00 |
On the Olo App, the guest pays the 5% network fee on top. On a $40 order that is about $2.00 if the fee is charged on the food subtotal. Olo has not said publicly exactly what the 5% is calculated on, so treat $2 as an estimate. Delivery is a separate cost: the restaurant sets the delivery fee the guest pays, while the actual delivery is priced by Dispatch's quote. Olo has not said publicly who covers any gap between the delivery fee you charge and the Dispatch quote, so ask before you set your fee.
The markup trap: why "we just raise prices on the apps" falls short
Many operators mark up their marketplace menus to cover commission. The question is how large the markup has to be. If the commission rate is c, a full offset needs a markup of m = c ÷ (1 − c), because the commission is charged on the marked-up price, not the original one.
| Commission | Markup needed to break even | Common 20% markup leaves you with (on a $40 in-store order) |
|---|---|---|
| 15% | 17.6% | $48 × 0.85 = $40.80 (covered) |
| 25% | 33.3% | $48 × 0.75 = $36.00 ($4 short) |
| 30% | 42.9% | $48 × 0.70 = $33.60 ($6.40 short) |
A 20% markup covers the 15% tier and falls short on the upper tiers. Meanwhile the guest sees a $48 menu next to your $40 in-store price, before any marketplace service or delivery fees. That price gap is the core of Olo's pitch. Olo says customers can save 15% to 30% by avoiding marketplace markups (Android Headlines). That figure is Olo's own estimate, and actual savings vary by restaurant and order.
The markup can also raise your pickup fee. Uber Eats' 7% pickup fee requires proof of validated in-store pricing; without it, the fee is 10% (Uber Eats). On a $40 pickup order that is $2.80 against $4.00.
A channel decision table
| Guest type | Best channel | Why |
|---|---|---|
| Has never heard of you | Marketplace, lowest tier you can accept | You are paying for discovery; budget it like advertising |
| Ordered from you once on a marketplace | Push them to pickup or direct | Pickup is 6-7% on the marketplace and 0% on direct |
| Regular who lives nearby | Your own direct ordering | No commission, and the guest record is yours |
| Uses a network app and likes variety (Olo App, if you qualify) | Second-party app | No commission, in-store pricing, and data is shared with you |
Glass describes the target as "this big middle in the normal distribution curve of guests who aren't quite loyal enough to a brand to download their app" (Restaurant Dive). Those guests sit closest to the second and fourth rows of the table.
Checklist: run the numbers on your own mix this week
- Pull last month's off-premise sales by channel. Record order count and average ticket for each marketplace tier, pickup and direct.
- Write down the commission rate you actually pay, not the one you signed up for. Check your marketplace statements against the published tiers.
- Compute your break-even markup with c ÷ (1 − c) and compare it with the markup on your marketplace menu.
- Price one delivery honestly. If you deliver through a quote-based service, compare the delivery fee you charge with the quote you pay.
- Check pickup pricing. If marketplace pickup prices differ from in-store prices, check whether that moves you to a higher pickup fee.
- Ask your ordering vendor about network apps. If you use Olo, ask about eligibility and any non-commission costs. If you don't, ask your current provider what it offers for repeat guests.
- Make direct ordering easy to find on your receipts, bags and Google listing. A marketplace order that turns into a direct regular moves from the 25% row to the 0% row of the first table.
If you run on KwickOS, its online ordering is listed with 0% commission, so the "direct" row of the first table applies to those orders.
What to watch next
Three open questions will decide whether second-party apps change the numbers for smaller restaurants. First, when Olo opens the app to restaurants that don't use Olo, and on what terms. Second, whether guests accept a visible 5% fee in place of marked-up menus. Third, how marketplaces respond on pickup pricing and parity rules. Until then, the table above is the tool: every channel has a per-order cost, and you can compute it.
Frequently asked questions
Does the Olo App charge restaurants a commission?
No. Olo says every order through the Olo App is commission-free for the restaurant. Guests pay a 5% network fee to Olo and any delivery fee the restaurant sets.
Can any restaurant join the Olo App?
Not yet. Olo says the app is initially available to existing Olo customers and that it plans to open it to all restaurants eventually. It has not published a timeline.
How much should I mark up marketplace menus to cover commission?
Divide the commission rate by one minus that rate. A 15% commission needs about a 17.6% markup, 25% needs 33.3%, and 30% needs 42.9%. A flat 20% markup falls short on the 25% and 30% tiers.
What do DoorDash and Uber Eats charge on pickup orders?
DoorDash lists a 6% pickup commission on its Basic, Plus and Premier plans. Uber Eats lists a 7% pickup fee, which rises to 10% if the restaurant cannot show validated in-store pricing.
Who delivers Olo App orders?
Olo has no delivery fleet. Its Dispatch tool sends each order to the delivery services covering that restaurant and picks the best quote, and the drivers are often affiliated with DoorDash or Uber Eats.
Sources
- Welcome to the Olo Network (Olo App FAQ), Olo
- Olo launches restaurant ordering app with promise of lower prices, Nation's Restaurant News, 2026-10-20
- Olo app takes aim at delivery commission fees (Restaurant Dive), Restaurant Dive, 2026-10-21
- Olo app launches to 40M users, Fast Casual, 2026-10-20
- Olo takes on DoorDash, Uber Eats with no menu markups, Android Headlines, 2026-10-21
- DoorDash Marketplace plans and pricing, DoorDash
- Uber Eats pricing for restaurants, Uber Eats
- Report: Takeout, drive-thru, delivery are more popular than ever, National Restaurant Association, 2025-04-17
- KwickOS home page (online ordering, 0% commission), KwickOS
Checked November 3, 2026. Photo: Kampus Production / Pexels.
From the KwickOS family
Built by the team behind KwickOS restaurant platform, KwickPOS (cloud + offline hybrid POS, 5,000+ locations) and the KwickPhone AI phone agent.