DoorDash to acquire Square’s food ordering platform Caviar for $410m
DoorDash acquisition of Caviar : DoorDash, a San Francisco-based on-demand food delivery service, has agreed to acquire food ordering platform Caviar from mobile payment company Square for $410 million in a cash-cum-stock deal.
Founded in 2012, Caviar was acquired by Square about two years later. The food ordering platform, which operates in hundreds of cities in the US, connects diners with restaurants through delivery, pickup, or catering.
DoorDash, on the other hand, is a technology platform, focused on connecting customers with their favorite local and national businesses in more than 4,000 cities and all 50 US states and Canada.
Commenting on DoorDash acquisition of Caviar, Jack Dorsey – CEO of Square, said: “We are increasing our focus on and investment in our two large, growing ecosystems—one for businesses and one for individuals. This transaction furthers that effort, and we believe partnering with DoorDash provides valuable and strategic opportunities for Square.”
DoorDash acquisition of Caviar. Photo courtesy of DoorDash.
According to DoorDash, its acquisition of Caviar creates a company that is highly differentiated having a unique brand and wide-ranging selection.
DoorDash acquisition of Caviar is said to underscore the two companies’ strategic commitment to selection of merchants.
The addition of restaurants in Caviar’s offerings, with whom DoorDash will closely work to generate their growth, will help the combined company to cater to all food preference and occasion. Furthermore, Caviar’s complementary geographic presence is expected to help DoorDash with a considerable number of new and unique customers, who will benefit from an even larger set of merchants.
DoorDash acquisition of Caviar is said to continue the consolidation on the partnership of the former with Square. Currently, the on-demand food delivery service is integrated with Square for restaurants point of sale, which optimizes the acceptance of online and in-person orders for merchants. In the second quarter, Cash Boost partnered with DoorDash to provide instant rewards when customers use their Cash Card at the latter.
Commenting on DoorDash acquisition of Caviar, Tony Xu – CEO of DoorDash, said: “We have long-admired Caviar, which has a coveted brand, an exceptional portfolio of premium restaurants and leading technology.
“The acquisition further enhances the breadth of our merchant selection, enabling us to offer customers even more choice when they order through DoorDash. We look forward to welcoming the Caviar team to DoorDash and expanding our partnership with Square in the future.”
DoorDash acquisition of Caviar, which is subject to regulatory approvals and certain other closing conditions, is likely to be wrapped up this year.
Earlier this year, DoorDash raised $400 million in Series F financing round, which was jointly led by Singaporean investment company Temasek and Dragoneer Investment Group.