Amazon is immersing itself deeper into the food sector as it collaborates with more restaurants in food delivery. The company’s acquisition of Whole Foods marked its entry into the grocery market while Amazon Restaurants represents its push to dominate food delivery.
Friday’s announcement of a partnership between the online retail giant and Olo resulted in GrubHub’s shares tumbling 6 percent. Olo, a food delivery service based in New York will be able to list its clients on Amazon.com’s Amazon Restaurants food delivery section according to the deal. GrubHub, a restaurant delivery service based in Chicago, managed to regain some ground to settle for a drop of 2 percent at close of trading Friday.
Noah Glass, CEO of Olo speaking on the deal said that Amazon will bring on board its obsession with providing great customer and restaurant experience. He added that these characteristics hold up the changing expectations and behaviors of today’s customers.
The deal will allow the integration of Rails, Olo’s application programming interface with Amazon Restaurants to enable Olo’s restaurant partners get featured on Amazon Restaurants. Olo’s current list of customers include Shake Shack, Wingstop, Denny’s and Chipotle. With the interface already allowing restaurants to list their menus on third-party marketplaces, it will now be easier for orders coming through the delivery provider to move straight to a point-of-sale system.
In a press release, Olo explained that the collaboration is intended to make things easier for restaurants in processing orders and to streamline capacity for peak hours.
Gus Lopez, general manager of Amazon Restaurants said that the deal will simplify the on-boarding process for new restaurants and efficiently manage delivery choices. He added that the technology used by Olo will help grow Amazon Restaurants’ network and give Amazon Prime members the benefit of expanded delivery choices and super fast service.
GrubHub, which owns MenuPages, Seamless and soon Eat24, has seen its shares grow 35 percent this year in a sign of the sector’s growth and customer expectation for fast delivery of their favorite brands.