Square, the company that so far was an online payment company, has bought Caviar, which is a food-delivery start-up based in San Francisco in a $90 million stock purchase.
Caviar is a start-up that provides delivery services for restaurants not having their own delivery service. The service was launched in 2012 and is available in Boston, Los Angles, Seattle, New York and Washington.
Square has said that the acquisition of Caviar places it in a good position to server better its more than 50 thousand restaurant clients that use its payment register service. Jack Dorsey, the CEO of Square has said in a statement:
“Caviar’s curated, seamless delivery experience is exactly the kind of service we want to provide buyers and sellers. By making delivery such a fast, friendly, and easy process, Caviar gives time back to restaurants so they can focus on what they do best — cooking great food for their customers.”
Caviar will likely continue as an independent company in the near future but its acquisition by Square will sure help it scale up quickly. Caviar only provides services to a few hundreds restaurants.
Other competing delivery start-ups are Seamless and GrubHub but those are mostly targeted towards service providers already having their own delivery fleets.