A new Amazon delivery partnership means that fast food and fast casual chains like Chipotle and Shake Shack could be delivered via the corporate giant.
Photo: Dennis Crowley on Flickr
The Seattle Times reports that Amazon is entering a partnership with restaurant tech firm Olo. Olo provides digital order and pay services to 200 restaurant brands with roughly 40,000 locations in total. These brands include Buca Di Beppo, who has already pledged to use Amazon’s restaurant delivery service, Five Guys, Jamba Juice, Wingstop, and Shake Shack.
By integrating with Olo, Amazon Restaurants will expand to thousands of restaurants that can use Olo’s network to integrate with Amazon Prime. The partnership should help swiftly and easily incorporate several more restaurants into Amazon’s delivery portfolio, meaning customers should see a plethora of new choices in the near future.
Olo, on the other hand, has launched a new product called Rails that makes it even easier for its restaurants to take delivery orders from Amazon and other third party services.
While the Amazon delivery partnership should help Amazon Restaurants expand, CNBC reports that it doesn’t help a crucial problem the business has: cost. Amazon apparently charges 30 cents for every dollar of food ordered through its program, while other services like GrubHub and DoorDash charge in the ballpark of 12-25 cents. Amazon will need to lower that so-called “take rate” in order to stay more competitive with specialized food delivery businesses.