DoorDash Acquires Square's Caviar for $410 Million
DoorDash purchases the premium food delivery service Caviar from Square for $410 million in a cash and stock deal. The acquisition allows Square to focus on its core business ecosystems while expanding DoorDash's restaurant selection.
DoorDash reaches an agreement with Square to purchase the premium food delivery service Caviar for $410 million in cash and preferred stock. Square originally acquires Caviar about five years ago for roughly $90 million, making this sale a significant return on investment. The deal allows DoorDash to expand its merchant selection and add high-end restaurants to its platform.
This acquisition occurs while DoorDash faces ongoing scrutiny over its worker compensation practices, though the company recently promises to stop using customer tips to subsidize driver wages. All Caviar employees, including the division's lead Gokul Rajaram, join DoorDash once the transaction officially closes later this year.
Square CEO Jack Dorsey explains that selling Caviar allows the company to focus more intently on its core ecosystems for businesses and individual consumers. DoorDash CEO Tony Xu praises Caviar's brand and technology, noting that the combined companies will continue working together to empower local economies and improve the food delivery experience.