Square acquires Caviar, how’s that for a deal? The names are as attractive and clever as the businesses themselves. The entire Caviar team will join Square in a $90 million, all-stock acquisition is the perfect accompaniment to Square Inc.’s expansive and comprehensive business. The entire Caviar team will join Square.
Square offers a wide range of services including, but not limited to, Square Reader, a reader application for internet accessible devices allowing businesses to use them to accept credit cards for purchases; Square Cash, offers a convenient way to send and receive money; Square Market, enables users to easily access and shop online; and Square Order, an application allowing people to place online orders at their favorite restaurant or grocer for pick-up at a predetermined time with an 8% transaction fee.
Caviar is the perfect adjunct to Square Order (and vise versa) and will prove to be very lucrative as both companies already have a strong customer base in this niche market.
Caviar, a San Francisco, CA based company, is a food delivery service business. The rapidly growing company delivers for local restaurants that don’t otherwise offer delivery to their customers. The company has grown by over 500% year after year and has an 80% return customer rate.
Now that Square has acquired the delivery service, Square will be able to offer their customers the convenience of a one-stop-shop for both purchasing and receiving food from their favorite restaurants—giving Square an edge over their competitors DoorDash, Munchery, Sprig, Postmates and Spoonrocket. Combining the key elements of the two businesses will prove to be the perfect solution for people and businesses looking for a quick and easy way to have a a delicious lunch or dinner.
The co-founder of Caviar, Jason Wang, says the sale will help Caviar’s scale rise.