Square Bolsters Food Delivery Capabilities with Caviar Acquisition
In a strategic move to expand its footprint in the food delivery market, Square has officially acquired Caviar, the curated food delivery service. The deal, valued at $90 million in stock, marks a significant step for Square as it integrates Caviar’s infrastructure to enhance its existing restaurant offerings.
The Deal at a Glance
- Acquisition Price: $90 million (stock-based)
- Caviar’s Recent Funding: Raised $13 million in April 2024
- Square’s Motivation: Bridges the gap between food ordering and delivery for restaurants lacking in-house logistics
While neither company disclosed full terms, the acquisition aligns with Square’s broader strategy to dominate the restaurant tech space. Earlier this year, Square launched Square Order, an app allowing customers to order food for pickup. With Caviar’s delivery network, Square can now offer end-to-end solutions, from ordering to doorstep delivery.
Why Caviar?
Caviar distinguishes itself in the crowded food delivery market by partnering with high-end restaurants that don’t traditionally offer delivery. Unlike compe*****s such as Postmates or DoorDash, Caviar focuses on curated, premium dining experiences, making it a natural fit for Square’s clientele of 50,000+ restaurants.
Strategic Synergies
Square’s recent product launches—including inventory tracking, invoicing, and POS software—complement Caviar’s delivery capabilities. This acquisition enables Square to:
- Expand its service ecosystem for restaurants
- Compete with giants like Uber Eats and Grubhub
- Leverage Caviar’s premium restaurant network
A Competitive Landscape
The food delivery sector has seen heavy investment activity in 2024, with startups like Munchery (\(28M), Postmates (\)16M), and Sprig ($10M) securing significant funding. For Caviar, joining Square provides scale and stability in an increasingly competitive market.
What’s Next?
Square’s integration of Caviar could reshape the food delivery landscape, particularly for independent and high-end restaurants. As the deal closes, industry watchers will monitor how Square leverages Caviar’s infrastructure to challenge established players.
Stay tuned for updates as more details emerge.
