Tony Xu, CEO of DoorDash, said the deal "is another important step forward on our mission to empower local economies". With this trade. Rajaram Said "We have long-admired Caviar, which has a coveted brand, an exceptional portfolio of premium restaurants and leading technology".
Yesterday, DoorDash, one of the leading last mile logistics platforms in the U.S. announced that it has entered into a definitive agreement with Square, owned by Jack Dorsey, to acquire Caviar for $410 million in cash. "DoorDash has national scale, complimentary restaurant selection, a tremendous logistics platform and a team that shares our passion and commitment to better serve restaurants, couriers and customers".
"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".
"In his announcement about the Caviar acquisition, Xu wrote that Caviar, like DoorDash, '(works) hard to help local restaurants attract more customers, grow their sales and expand their reach, '" Tara Duggan reports for the San Francisco Chronicle. "To increase our focus, we chose to sell our Caviar business to DoorDash".
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".
The transaction continues to build on the partnership between DoorDash and Square.
With this agreement, Square will be able to focus on its core market, i.e, mobile payment more effectively. The company reported late Thursday earnings and revenue expectations but missed on gross payment volume, but provided a third-quarter adjusted profit guidance range that was below analyst expectations.
Just two weeks ago, the New York Times published a piece by a DoorDash/UberEats/Postmates delivery guy, describing his frantic workday in New York City dodging cabs and chasing tips. Xu said that it was a "short conversation".
DoorDash is hardly the first food-delivery platform to buy up one of its rivals.
"The big players in the on-demand food delivery space are now DoorDash/Caviar, Postmates, UberEats and Grubhub/Seamless".
If there are reasons for consumers to use one over the other, lately they have been negative ones for DoorDash.
DoorDash had come into severe criticism recently regarding the wages offered to its delivery partners.
The news of DoorDash's acquisition of Caviar is thus timely in burying that negative publicity and moving forward. The company has around 400,000 delivery people across the country.