The payment flow for Dispatch involves multiple parties, so it's best to start with one simple fact:
Olo holds agreements with Delivery Service Providers (DSPs) directly, so there is never a need for a direct money transfer between restaurant brands and the DSPs.
When a customer places a Dispatch order, the DSP sends a delivery quote for the basket to bid on it. Upon checkout, the customer pays for the contents of the basket and the delivery quote; payment for the delivery quote, either whole or subsidized, is added directly to the restaurant's merchant account. The store floats the Dispatch fees and tips until Olo withdraws it in their monthly invoice.
DSPs will periodically invoice Olo for the sum of all delivery fees and tips from the previous weeks or month. Olo then invoices the restaurant for the sum of all delivery fees and tips, plus the transactional Dispatch program fee. In effect, the restaurant is only paying the Dispatch program fee if the quoted delivery fee is not subsidized in any way.
Below is an example of a typical order placed via Dispatch and how the fees are passed between consumers, merchants, DSPs, and Olo. Delivery Fees may vary by DSP and if you'd like specific information on Delivery fees by DSP, please contact your Customer Success Manager or use our Contact Form.