DoorDash agrees to buy Caviar for $410 million
As we have been telling you for some time now, the third-party delivery platforms are desperate for market share and volume and continue to consolidate. While Amazon continues to lurk in the background, having just closed it's own small delivery business, and rumours of an acquisition of Postmates continue to swirl, the far more likely and predictable option has in fact materialized. DoorDash has agreed to purchase Caviar from its owners Square for a reported $410 million.
Square is a merchant services aggregator and mobile payment company and it will receive $410 million in the form of cash and preferred stock in DoorDash.
Following the acquisition there will be four dominant third-party food delivery platforms. Uber Eats, DoorDash, Grubhub and Postmates. DoorDash has announced that it will run Caviar separately for now. Here is the press release from DoorDash co-founder and CEO Tiny Xu
"Today we’re excited to announce that DoorDash is acquiring Caviar. The combination of our two businesses will create the most differentiated company in the industry, which is able to offer customers wide-ranging merchant selection.
At DoorDash, we talk a lot about our mission to grow local economies. We believe in the power of communities to help people create and grow their own businesses — to make their own history. It’s why we take a merchant-first approach to everything we do. If local businesses thrive, the communities around them do too.
In Caviar, we’ve found a company with a similar ethos. There is a strong kindred spirit between our two companies. Like DoorDash, Caviar is a merchant-first company, working hard to help local restaurants attract more customers, grow their sales and expand their reach.
We are incredibly impressed with what the Caviar team has built — a premium brand built on rich relationships with premium restaurants. Adding these merchants to our platform will complement DoorDash’s merchant selection, ensuring we can cater to everyone and every occasion.
This transaction comes on the heels of our unprecedented growth over the past year, driven by the hard work and passion of our team. I know that the impressive Caviar team will help us continue to grow and build on top of this strong foundation for years to come.
I am confident that the combination of our two great companies will create tremendous value for our community of merchants, consumers, drivers, and the local communities that sustain them all. And I am so excited for this next chapter in DoorDash’s journey."