Popular food-delivery service DoorDash is set to purchase its smaller competitor, Caviar, for $410m in cash and Door Dash preferred stock. As a result of the acquisition, DoorDash will be able to expand its last-mile logistics platform to include Caviar’s premium restaurants and complimentary geographic footprint.
The deal also strengthens the existing partnership between DoorDash and Square, the mobile payment platform created by Twitter CEO, Jack Dorsey. DoorDash already uses Square for Restaurants point of sale, which allows customers to pay via online and in-person, as well as earn points for future rewards.
Tony Xu, CEO of DoorDash, said: "Today's announcement is another important step forward on our mission to empower local economies. 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."
Gokul Rajaram, Caviar lead, said: "Caviar has built a trusted brand with customers and many of the best restaurants. DoorDash has national scale, complementary restaurant selection, a tremendous logistics platform, and a team that shares our passion and commitment to better serve restaurants, couriers, and customers. I'm incredibly excited to be joining, with the rest of the Caviar team, to help build the future of local commerce."
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."