Amazon Ramps Up Meal Delivery, Partners With Danny Meyer Backed Startup

Posted: Sep 27, 2017

Amazon has teamed up with a New York-based startup to bolster its food delivery services.

The e-commerce giant tapped Olo, a mobile ordering platform for more than 200 restaurant brands, to gain access to popular eateries such as Buca di Beppo and, potentially, Shake Shack.

Renown restaurateur Danny Meyer is the founder of Shake Shack (NYSE: SHAK) and an investor in Olo.

A while back, Shake Shack debuted an app that was created in collaboration with Olo, as well as mobile product agency Fuzz, engagement platform Paytronix, and digital experience testing services from Applause.

Olo is based in Manhattan's Financial District and provides digital ordering and delivery solutions for multi-location restaurants. It has raised more than $63 million in funding from investors like the Raine Group.

According to the Chicago Tribune, food deliveries appeal to Amazon (NASDAQ: AMZN) because they put the Seattle company in constant contact with shoppers and amass valuable data about the preferences of their shoppers.

Collaborating with Olo could bring fast-food restaurants like Chipotle, Five Guys, and Wingstop to the Amazon Restaurants delivery service.

After meal deliveries, which were expected ever since Amazon bought Whole Foods, the Jeff Bezos-led company could venture into health care, pharmacy and drug deliveries. According to analysts who spoke with pharmacy executives, Amazon could pursue a mail-order pharmacy initially focused on uninsured customers or people with high deductibles who mainly pay cash for their prescriptions.

The company recently hired health-tech exec Missy Krasner as part of a special projects team focused on building digital health care projects, such as health apps powered by Alexa, telemedicine and an electronic medical record data platform.

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By Anthony Noto
September 26, 2017

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