DoorDash agrees to purchase restaurant delivery service Caviar for $410m
Deal to acquire Caviar further solidifies DoorDash as largest restaurant delivery provider
Square agreed to sell restaurant delivery service Caviar. The DoorDash purchase of Caviar will fetch $410M in cash and DoorDash preferred stock. Caviar, which was founded in 2012 and bought by Square in 2014, delivers food in major markets across the United States. Gokul Rajaram, Caviar’s Lead, and the Caviar team will join DoorDash once the deal closes.
DoorDash expects to gain “leading edge technology” and an “exceptional team.” Caviar works closely with restaurants, and delivery stakeholders, including customers for a unique experience. And Caviar’s curated list of restaurants for which it delivers will grow exponentially in this next chapter with DoorDash. The DoorDash purchase of Caviar should also give it leverage as it eyes signing additional restaurant partners.
The deal to buy Caviar is an extension of the partnership that already exists between DoorDash and Square. As an example, DoorDash integrates with Square for Restaurants point of sale. Also, in the second quarter, Square’s Cash Boost partnered with DoorDash to reward customers using their Cash Card with DoorDash.
Deal solidifies DoorDash delivery leadership position, demonstrates ambitions
“The acquisition further enhances the breadth of our merchant selection, enabling us to offer customers even more choice when they order through DoorDash,” said Tony Xu, chief executive of DoorDash. “We look forward to welcoming the Caviar team to DoorDash and expanding our partnership with Square in the future.”
As the #1 third-party provider of restaurant delivery by market share, DoorDash has been aiming to grow even larger. It currently offers delivery from 4,000 restaurants in all 50 states. Additionally, it has been expanding into grocery delivery, while at the same time testing autonomous delivery with Cruise. In April, it began delivering for Walmart, starting in Atlanta, according to Forbes.
Furthermore, a deal to provide Wegmans meal delivery demonstrates additional grocery business ambitions by DoorDash. At the same time as the Walmart deal, DoorDash started delivering for the Wegmans 2GO program. In as much as the prepared meals delivery launched, limited delivery began in Sterling, Va and in Rochester, N.Y. at the Perinton, East Avenue and Pittsford stores, reports Supermarket News.
Photo credit: Caviar
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