Food Delivery App Caviar Acquired By DoorDash For $410Mn
Mobile App

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 To DoorDash For $410 Mn After Failing In First Attempt

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.

Mobile App

K-Pop Video Sharing App Amazer Secures $1.3M In Funding

4 min read  

There’s some good news for the Korean pop music fans. Amazer, a K-pop video-sharing app has got the funding of $1.3 million in Series A funding. Amazer has secured the funding from the BTC Investment, an affiliate of South Korean cryptocurrency exchange Bithumb, and ICB.As stated by Deal S

Mobile App

Lyft Offers 24/7 Live Driver Phone Support

4 min read  

Some new driver-centric features have been introduced by Lyft in its app today. These features are deemed to be the direct reply to the advancements made by rival Uber in its 180 days of transformation campaign. Lyft’s new features enable customers to contact drivers via the app throughout 24/

Mobile App

Trusted Athlete App: ICSS Announces its New App To Test Drugs For Athlete

4 min read  

Mobile application development considerably fabricating every field by its continuous Innovative change in technology. Mobile applications contributed its contrivance in health, banking, education, business but now it's now pioneering athlete drug testing department. On 16 March 2017 ICSS(

Mobile App

Skype Gets Read Receipts For Chats

4 min read  

Skype adds read receiptsIf the other user sees the message, their avatar will show up belowThe feature is available for group & one-on-one conversationUsers can either turn it on or off from the settings menuSkype is getting a whole lot of attention these days not for being so