Popular delivery service DoorDash announced on Thursday (Aug. 1) that it has brokered an agreement to acquire Caviar, Square’s restaurant delivery platform, according to a press release.
DoorDash will spend $410 million in cash and DoorDash preferred stock. The acquisition will create a company with lots of options and selections when it comes to restaurants and products.
The deal is meant to bolster both companies’ commitment to specialized merchant selection and will add Caviar’s premium restaurants to the DoorDash platform. DoorDash said it will help to drive growth for these restaurants and cater to all food preferences and occasions.
“Caviar’s complementary geographic footprint provides DoorDash with a significant number of new and unique customers, who will benefit from an even broader set of merchants,” DoorDash said in the release.
DoorDash said it will take advantage of Caviar’s technology and team, which it says is “deeply passionate” about the complete restaurant delivery experience, from the merchants to customers and everyone in between.
Caviar’s Gokul Rajaram will lead the team once the deal is finalized.
“Today’s announcement is another important step forward on our mission to empower local economies,” said Tony Xu, DoorDash CEO. “We have long admired Caviar, which has a coveted brand, an exceptional portfolio of premium restaurants and leading technology. The acquisition further enhances the breadth of our merchant selection, enabling us to offer customers even more choice when they order through DoorDash. We look forward to welcoming the Caviar team to DoorDash and expanding our partnership with Square in the future.”
The acquisition will grow an already existing partnership between the two companies, as DoorDash already uses Square for Restaurants point of sale.
“We are increasing our focus on and investment in our two large, growing ecosystems — one for businesses and one for individuals,” said Jack Dorsey, CEO of Square. “This transaction furthers that effort, and we believe partnering with DoorDash provides valuable and strategic opportunities for Square.”
This news originally appeared on PYMNTS.COM