Square’s Caviar Introduces Pickup Option and Acquires OrderAhead Assets
Square’s on-demand food delivery platform, Caviar, is rolling out a new pickup service, allowing customers to skip delivery fees by collecting orders directly from restaurants. Simultaneously, Caviar has acquired the pickup-focused assets of mobile ordering startup OrderAhead, signaling a strategic expansion in the competitive food delivery market.
Key Features of Caviar Pickup
- No Delivery Fees: Customers pay only for their food, avoiding additional charges.
- Convenience: Skip long lines by pre-ordering via the Caviar app.
- Initial Availability: Launching in San Francisco, East Bay, Los Angeles, and Portland.
The OrderAhead Acquisition
While financial details remain undisclosed, Square confirmed it acquired only OrderAhead’s pickup business. The existing OrderAhead app will continue operating temporarily before being phased out. This move strengthens Caviar’s restaurant network by integrating OrderAhead’s partner businesses.
“OrderAhead’s expertise in streamlining restaurant orders aligns perfectly with Caviar’s mission to support restaurant growth,” said Gokul Rajaram, Caviar Lead at Square. “This accelerates Caviar Pickup’s rollout and expands diners’ options nationwide.”
Why This Matters
- Competitive Edge: Caviar competes with giants like Postmates, GrubHub, and DoorDash. Adding pickup services could attract more restaurants and cost-conscious customers.
- Revenue Growth: Square’s food delivery segment contributed over 25% of its revenue last quarter, making this expansion critical.
- Operational Synergy: Square can cross-sell its payment hardware/software to Caviar’s restaurant partners.
OrderAhead’s Legacy
Founded in 2012, OrderAhead raised $10.5M from top investors, including Y Combinator and Marc Benioff. Its pickup-focused technology now bolsters Caviar’s infrastructure.
The Bottom Line
With 3,000+ U.S. restaurants on its platform, Caviar’s new pickup feature and OrderAhead integration position it as a more versatile player in the fast-evolving food delivery space.
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