• Restaurant software provider Olo is launching a delivery app.
• Olo will offer the same menu prices for delivery that in-person visitors get, it said.
• Other delivery services often mark up order prices.

A new food delivery service is taking aim at menu mark-ups — and some entrenched rivals

Restaurant ordering software company Olo is launching its own customer-focused app, it said on Tuesday. The app puts it in competition with more established delivery companies, such as DoorDash and Uber Eats.

On Olo's app, customers will see the same prices that restaurants charge in-person patrons, the company said. By contrast, third-party delivery services often charge customers higher menu prices than diners would get at a restaurant.

Offering in-store prices can save customers between 15% and 30%, Olo said.

"It's a better experience for consumers and a more sustainable model for restaurants, with no menu price inflation and no barriers standing between great brands and the people and communities they serve," Olo CEO and founder Noah Glass said.

Food delivery is one area where consumers continue to spend money, even as they cut back their budgets elsewhere. How much customers pay for delivery — and whether apps charge individuals different prices or the same order — can affect how often they order.

Olo is stepping into a competitive space. DoorDash and Uber Eats continue to grow, including by rearching into club deliveries and catering. And Walmart, which spent years building its own grocery-focused delivery service, started delivering restaurant orders earlier this year.

Olo got its start in 2005 with a service that let users text their orders to restaurants in the pre-smartphone era. Now, the company fields about 3.5 million orders daily through around 800 restaurant brands.

The company doesn't have its own team of delivery drivers. Instead, the company uses its own dispatch service to compare delivery options at other third-party services, such as Grubhub, and pick one based on factors like cost and speed.

Olo's delivery app will allow customers to order from about 250 restaurants, including Five Guys and Dave's Hot Chicken.

Do you have a story idea about Uber Eats, DoorDash, or another delivery service? Contact this reporter at abitter@businessinsider.com or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

• Uber is offering bonuses to some drivers for completing more rides or referring new drivers.
• The bonuses can add up to hundreds or thousands of dollars.
• Uber has used such extra pay in the past to attract drivers to the platform.

Uber is offering ride-hailing drivers something that many haven't seen in years: Big bonuses.

The ride-hailing service is coaxing some drivers to take more rides, offering up to several hundred dollars in "incentive" pay if they complete a set number of rides within a set time period, according to several screenshots of the offers seen by Business Insider.

In one example, a driver was offered $525 if the driver completed 45 trips within a few days. Similar offers involved smaller payouts and fewer trips, but paid out proportional amounts of $10 to $12 per trip.

That's a huge pay bump for many drivers, who make as little as a few dollars per trip, said Sergio Avedian, an Uber driver and senior contributor to the gig-driver-advocacy blog and YouTube channel The Rideshare Guy.

The bonuses might also be Uber's attempt to get more drivers on the road to meet rider demand during busy periods like Halloween and the holiday travel season, Avedian said.

"This may tell the story that they need supply," he said. "They're saying that we need to get everybody out there."

Some drivers have also gotten messages from Uber encouraging them to refer friends to sign up as drivers or get those who haven't driven in a couple of years back on the app, according to screenshots seen by Business Insider. Payment for those referrals can reach up to $1,225.

The payments are a potential boon to Uber drivers, whose pay can vary significantly between cities.

Uber drivers have to cover their own costs, such as car maintenance, since they are independent contractors, not full-time employees. Rising gas prices have eaten into drivers' pay after the US and Israel started a war with Iran earlier this year.

An Uber spokesperson did not provide details on why the company is offering the payments.

Uber has used targeted incentive payments before.

In 2021, demand for rides began to outpace the number of available drivers after many had stopped driving during the pandemic.

In response, the company decided "to invest fast and to invest aggressively in attracting drivers back to Uber" and increased the number of active drivers on the app by 65% between January and November that year, CEO Dara Khosrowshahi said on an earnings call at the time. Uber later pulled back on the extra pay.

"When we were coming out of the pandemic, they were short tons of drivers," said Avedian, who was driving for Uber at the time. "It was crazy bonuses out there."

More recently, riders have been paying more per mile and waiting longer for their rides to show up, according to a study published last month.

Do you have a story idea about Uber? Contact this reporter at abitter@businessinsider.com or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.