DoorDash to buy Caviar food delivery platform from Square for $410mn
Last mile logistics platform DoorDash announced this week plans to acquire Caviar, the all-in-one food delivery platform from fintech company Square. The deal will see DoorDash pay a $410mn cash and stock consideration to Square for the platform.
The acquisition creates a highly diversified logistics company, and highlights both DoorDash and Caviar's strategic commitment to merchant selection - the process by which consumers establish loyalty to brands and services.
The addition of Caviar's premium restaurants, with whom DoorDash will work closely to drive their growth, will enable the combined organization to cater to every food preference and occasion. Caviar's complementary geographic footprint provides DoorDash with a significant number of new and unique customers, who will benefit from an even broader set of merchants.
"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,” said Tony Xu, CEO of DoorDash in a statement. 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."
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 reached a $7.1bn valuation as a result of a $400mn funding round earlier in the year.
The acquisition is expected to close before the end of 2019, pending regulatory approval.