Square buys food delivery outfit Caviar
05 August 2014 | 3963 views | 0
Payments firm Square is diversifying through the acquisition of San Francisco-based food delivery service Caviar. The deal is thought to be worth around $90 million in stock.
Caviar allows buyers to get meals sent to their homes from local restaurants that do not otherwise offer delivery, albeit at the cost of a $9.99 surcharge.
Founded in San Francisco in 2012, the firm now also operates in Boston, Chicago, New York, Seattle, Los Angeles, and Washington DC, with order volumes growing more than 500% year-over-year.
Jack Dorsey, CEO, Square, says: "By making delivery such a fast, friendly, and easy process, Caviar gives time back to restaurants so they can focus on what they do best - cooking great food for their customers."
In May Square launched Square Order, an app that lets people order and pay for food from participating restaurants, notifying them when their meal is ready to collect.
Square has also moved into small business lending as it looks to expand beyond its payments roots. Earlier this year it emerged that, despite revenues of $550 million, the firm posted a loss of around $100 million in 2013 as it struggled with the thin margins on the 2.75% fees it charges merchants.