Since Olo holds all agreements with Delivery Service Providers (DSP), there is no 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. The customer pays for the basket and delivery quote. However, payment for the delivery quote (including any subsidies) is added directly to the restaurant's merchant account. The store floats the Dispatch fees/tips until Olo withdraws it in the monthly invoice.
Each month, the DSP invoices Olo for the sum of all delivery fees/tips in the previous month. Olo then invoices the restaurant for the sum of all delivery fees/tips and the Dispatch program fee. In effect, the restaurant is only paying the Dispatch program fee.
Below is an example of a typical order placed via Dispatch and how the fees are passed between consumers, merchants, DSPs, and Olo.