US-based Square acquires food delivery startup Caviar for $90M
California-headquartered Square that provides point of sale (POS) systems to small merchants like food trucks and book vendors has acquired food delivery startup Caviar. While the financials of the deal remain undisclosed, a The New York Times report pegs the deal size at roughly $90 million (Rs 546.6 crore).
"With the acquisition, Square deepens its commitment to providing independent sellers with services that make it easier for them to grow their business," read an official statement by the company. Started by Twitter's co-founder Jack Dorsey, Square has forayed into the food-delivery market with this deal.
"Caviar's curated, seamless delivery experience is exactly the kind of service we want to provide buyers and sellers. By making delivery fast, easy and friendly, Caviar gives time back to restaurants so they can focus on what they do best — cooking food for their customers," said Dorsey, CEO of Square.
Launched in 2012, Caviar partners with high-rated restaurants that don't offer delivery services. Currently, the company offers its services in Boston, Chicago, New York, Seattle, Los Angeles and Washington DC, in the US. According to the company, its order volume has grown more than 500 per cent year on year, and 80 per cent of its monthly deliveries are to repeat customers.
"Caviar has made it easy for customers to get food delivered from some of the most popular, local restaurants in the country. With Square's national scale, we'll be able to help buyers get food delivered from more of their favourite restaurants, while helping restaurants reach new customers and simplify their operations," said Jason Wang, co-founder and CEO, Caviar.
Square says more than 50,000 restaurants use its complete register service as of now, which includes tools for accepting credit cards as well as tracking inventory and sales. It also recently released inventory tracking, offline mode, and 'Square order', a new way for customers to pre-order food and drinks for pickup.
According to a Fortune report, the company had planned to go public last year, but postponed its plans indefinitely earlier this year after the market for tech IPOs dried up.
In December 2013, Dorsey voluntarily returned 10 per cent of his 30 per cent stake in Square back to the company in order to free up as much as $150 million in equity for the company's employees and for possible acquisitions, it added.