The initial public offering (IPO) class of 2021 has had a rough time on the markets. Shares of many 2021 IPOs are down more than 40%, 50%, or even 60% from the prices they went public at. Olo (NYSE: OLO) and Toast (NYSE: TOST) are no exceptions, falling 74% and 67% from their IPO dates, respectively.
That said, both are thriving in the restaurant software industry. Toast and Olo are rivals in this space, with Olo providing back-end software tools to optimize digital ordering and Toast covering all of a restaurant's digital applications, from point-of-sale services to payroll. So which one looks like the better buy for investors looking to take a bite out of this industry? Let's find out.
Olo focuses on one specific pain point for restaurants: digital ordering. Many restaurants lack the technological infrastructure to scale digital ordering operations, which might leave a bad taste in patrons' mouths. Olo simplifies this, and it also provides digital solutions for any mode of ordering, from drive-thru to delivery.
Source Fool.com