- Last-mile logistics company DoorDash announced that it is acquiring Caviar for $410 million. These are the details.
DoorDash — one of the fastest-growing last-mile logistics companies in the U.S. — recently announced it entered a definitive agreement with Square to buy Caviar for $410 million in cash and DoorDash preferred stock. DoorDash’s purchase of Caviar will create a highly differentiated company with a unique brand and wide-ranging selection.
This acquisition also underscores both DoorDash and Caviar’s strategic commitment to merchant selection. And the addition of Caviar’s premium restaurants — which DoorDash will work closely to drive their growth — will enable the combined organization to cater to every food preference and occasion. And Caviar’s complementary geographic footprint will provide DoorDash with a significant number of new and unique customers — who will benefit from a 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. 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,” said DoorDash CEO Tony Xu.
DoorDash was launched in 2013 by Xu, Andy Fang, and Stanley Tang. The company now operates out of 4,000 cities and all 50 states across the U.S. and Canada. And the company currently reaches 80% of U.S households and has the widest selection of restaurants in the U.S.
Plus DoorDash will benefit from Caviar’s leading technology and exceptional team — who are deeply passionate about the restaurant delivery experience for merchants, couriers, and customers. And the Caviar team — including Caviar Lead Gokul Rajaram — is going to be joining DoorDash once the acquisition closes.
“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,” added Rajaram.
This transaction is going to continue to build on the partnership between DoorDash and Square. And DoorDash is currently integrated with Square for Restaurants point of sale — which streamlines the acceptance of online and in-person orders for merchants. And in the second quarter, Cash Boost partnered with DoorDash to provide instant rewards when customers use their Cash Card at DoorDash.
“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,” explained Square CEO Jack Dorsey.
