Square Acquires Caviar, Begins Offering Food Delivery Services
August 6, 2024
By: Michael Foster
Square is going from payment platform to full-on retailer with its acquisition of food delivery service Caviar. Square has been in talks to buy the startup that is valued at $90 million for some time, and now the deal is official.
Caviar follows in the footsteps of much larger delivery services such as GrubHub Seamless, but it goes one step further by providing its own delivery drivers and vehicles to restaurants that do not currently offer deliveries. Caviar also boasts no minimum order requirements and real-time GPS tracking so customers know exactly when their food will arrive.
The acquisition will beef up Square’s foray into the food delivery and restaurant market, which it first targeted earlier this year with its Square Order service, which allows customers to order ahead food from a dedicated app that offers menus from local restaurants. The app will alert users when the food is ready to be collected.
With Caviar, Square can go the last step and actually deliver food to customers’ houses.
Caviar currently serves a handful of metro areas in the country, after starting in San Francisco in 2012. The company has offered delivery from upscale restaurants and more specialty shops in metro areas, which has helped it grow in popularity amongst a small but dedicated audience.
The acquisition comes shortly after Google acquired Seattle-based Appetas, a platform that helps restaurants build their online presence. Other startups like Munchery, Postmates, Spoonrocket, and Sprig have also raised money in recent moves to become players in the growing mobile commerce fueled food delivery market.
