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 on 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.”
In March, DoorDash 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 Securities and Exchange Commission 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.”
