Fresh off its recent eye-popping funding round, the ascendant food delivery service DoorDash is buying a little extra growth by acquiring Caviar, a rival food delivery app, from payments firm Square. The sale price was $410 million in stock and cash.
Square has discussed selling Caviar, which it bought in 2014 for a reported $90 million, off and on for the majority of the time it has owned the app. After all, Square makes most of its money from doing business with other companies, rather than individual consumers, though it used Caviar to try to enlarge the footprint of its point-of-sale system for restaurants.
Caviar has share of the U.S. food delivery market so we don’t know how much growth DoorDash is getting. The big questions still on everyone’s mind: how much cash is DoorDash burning and will rival Postmates actually go public or be the next firm to sell itself?