Food delivery app DoorDash is seeking “tens of million of dollars” in damages from its partner, software company Olo, accusing it of breaching a contract and fraudulently overcharging it.
Olo is a software company that helps restaurants like Shake Shack and Chili’s manage its online orders. The firm made its initial public offering on the New York Stock Exchange in mid-March, expanding its presence at a time when online food ordering is surging. Its stock soared 39% on the first day. However, Olo’s stock fell 7% in trading Wednesday, at one point sinking to its lowest level since its debut, as further details of its litigation with DoorDash were disclosed in court documents on Tuesday at the New York State Supreme Court.
DoorDash told the court that it was overcharged by Olo, which had promised the delivery app that its fees “would never be higher than the fees charged
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