About three weeks after it was reported that delivery service DoorDash was suing its business partner, software provider Olo, for allegedly overcharging it, the two companies have resolved their dispute. In a joint news release, the two companies announced Thursday (April 22) that they have agreed to “settle and dismiss” the case, setting the terms of a new multi-year deal.
“Today’s announcement of a multi-year collaboration with DoorDash reflects our commitment to best serve the restaurant industry,” Olo Chief Customer Officer Marty Hahnfeld said in a statement. “We look forward to our continued partnership over the years ahead.”
DoorDash Chief Revenue Officer Tom Pickett commented, “We are pleased to have resolved this matter and continue to work together for the benefit of our merchants.”
Neither company has commented on the specific terms of the agreement.
In March, DoorDash had filed a memorandum with New York’s Supreme Court that alleged the software provide had been “charging DoorDash fees that were greater than it was charging comparable delivery platform providers” and that it was “inflating its own revenues by collecting from DoorDash tens of millions of dollars more than what DoorDash should have paid.”
In Olo’s S-1 SEC filing, the company disclosed that the delivery service sought “damages in excess of $7.0 million” and that Olo “believe[s] this lawsuit is without merit, and we plan to vigorously defend against it.”
Per DoorDash’s account, the company discovered the alleged discrepancy after acquiring former competitor Caviar in November 2019, and DoorDash claims that, reviewing Caviar’s financial records, DoorDash observed that Caviar being charged substantially lower rates for comparable services, despite Olo having pledged, per DoorDash’s account, to pledge to charge DoorDash its lowest fees.
“As Olo has already set forth, DoorDash’s allegations are baseless,” Olo said at the time in a statement to PYMNTS. “Despite all of DoorDash’s litigation rhetoric, the evidence speaks for itself. Olo will not comment further on ongoing litigation. Olo looks forward to continuing to work with DoorDash for the benefit of the restaurant industry.”
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