News

Square Sold Food Delivery App Caviar To DoorDash For $410 Mn After Failing In First Attempt

The acquisition deal did not go well with Square’s investors as its stock fell to 9% in extended trading.

Square Sold Food Delivery App Caviar

Competition among major food delivery apps is heating up.

DoorDash, a big name among food delivery service providers has acquired its San-Francisco based food delivery rival Caviar. The acquisition deal is said to be consists of a mix of cash and DoorDash Stock.

Caviar, a food delivery platform is reportedly being sold by its parent company Square for $410 million to DoorDash. In 2014, Square, a mobile payment company founded by Jack Dorsey initially purchased the Caviar for a $90 million. 

With door delivery food platform, DoorDash joining Caviar, its head Gokul Rajaram and rest of the Caviar employees will unite with DoorDash team after finalising the acquisition agreement. The purchase deal is expected to close later this year.

DoorDash co-founder and CEO Tony Xu  stated, 

He further added,

Launched in 2013, Caviar planned to do something different from other best food delivery apps like GrubHub and rather focusing on budget restaurants and fast-food chains, it put its attention on premium restaurants. Interestingly it was also one of the first food delivery apps to appoint its own food messengers instead of relying on the restaurant’s delivery man.

Gokul Rajaram stated,

However, the acquisition deal did not impress the Square’s investors much. After the announcement of DoorDash acquiring Caviar, the stock of Square fell to 9% in extended trading. During the earnings call, Square founder’s Jack Dorsey said,

Square has also attempted to sell the Caviar previously. In 2016, it offered the food delivery app, Caviar to Uber, yelp, and GrubHub. But at that time the price tag of $100 million did not interest anyone that much.

Square stated in its Q2 shareholder letter,

Even before the acquisition of Caviar, DoorDash was planning to cement its place as the biggest food delivery platform. As per Analytics firm, Second Measure, DoorDash recorded 34% of all U.S. meal delivery sales. 

This year, also DoorDash is quite active in raising the funds to expand its business. In the start of this year, it raised $400 million and in May, it went up to more bigger funding, raising $600 million in Series G round.

For the more latest news related to mobile apps industry subscribe to MobileAppDaily.

Tanya <span>Editor In Chief</span>
Written By
Tanya Editor In Chief

She is a content marketer and has more than five years of experience in IoT, blockchain, Web, and mobile development. In all these years, she closely followed the app development, and now she writes about the existing and the upcoming mobile app technologies. Her essence is more like a ballet dancer.

News

Instagram Co-Founders Resign From Facebook To Explore Their Curiosity And Creativity

2 min read  

Instagram co-founders Kevin Systrom and Mike Krieger, announced their departure from Facebook. Instagram’s CEO and CTO have shared that they are resigning from their respective positions in Instagram, which is owned by Facebook. Instagram founders have shared the wish ‘to explore their c

News

Google Fetches Location via Android Devices Even After You Disable Location Service

4 mins read  

How many of you know that most of the tech companies use the smartphone user’s location information without their concern? Removing the SIM cards and switching off the phone may give you the relaxation of getting off the radar.However, Google uses its Android devices to acquire the locatio

News

SnapChat Pushes SnapMap To The Web With A Story Embedding Feature

4 min read  

Snapchat seems to be going for every possible way that will uplift its user growth. The social media sharing platform has just pushed the web version of its Snap Map. Now, the mapping feature will be available on the web and even the non-Snapchat users can browse the stories over it. The Map shows t

News

Is iOS 12 Developer Beta 8 Worth It?

2 min read  

Almost three months back, the very first update was released that is Beta 1 and today the iOS Developer Beta 8 is available to be downloaded. To make the forthcoming upgrade more stable, Apple has been releasing new beta updates during these past few months.Even though, the final build release o

MAD Originals
MAD Originals

Cut to the chase content that’s credible, insightful & actionable.

Get the latest mashup of the App Industry Exclusively Inboxed

  • PRODUCTS
  • SERVICES
  • BOTH