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

News

Linux Releases Juno Beta 1 Developers Preview

4 min read  

Finally, Elementary OS Developers has unveiled the first ever beta version of the upcoming version of Juno. The company has named it as the Developer Preview and is rolled out for developers to test new features.The new release is all about integrating various design improvements and UX tweaks;

News

Android 9 Digital WellBeing Feature Rolled Out for OnePlus 6

5 min read  

Google's much-awaited Android 9 Pie version is already on the market, and we all are excited about the same. The things have spiced up more with the release of iOS 12. Much like Android 9 Pie, the new OS version from Apple also has updated many features that promise to take it to the next level,

News

Android Users To Get YouTube's Dark Mode Feature

4 min read  

The “Dark Mode,” which converts Youtube’s content to a dark background on white text is finally arriving on Android platform. The feature was first rolled out for desktop last year, and it was followed by iOS in March this year. Since then, the feature was due for the Android platf

News

Why Snapchat's Redesign Won't Do Any Good & It Could Have Excelled

4 min read  

Snap rolled out yet another design but the multimedia messaging app failed to attract users this time also. Snapchat had really a great time back in the year 2016, after that the app’s popularity gradually declined with no improvements even now. It all started with Snap CEO Evan Spiegel ignore