DoorDash acquires major restaurant chain

US hot food delivery company DoorDash has acquired restaurant chain Caviar for $410 million and DoorDash preferred stock.

Under the deal, DoorDash plans to drive growth in the Caviar premium restaurant chain. The restaurant chain has a similar geographic footprint to the delivery company and is set to add to DoorDash’s customer base thanks to Caviar being able to deliver food to customers as opposed to customers coming to them.

Tony Xu, CEO of DoorDash, said: “Today’s announcement is another important step forward on our mission to empower local economies. 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.”

Gokul Rajaram, Caviar Lead, said: “Caviar has built a trusted brand with customers and many of the best restaurants. DoorDash has national scale, complementary restaurant selection, a tremendous logistics platform, and a team that shares our passion and commitment to better serve restaurants, couriers, and customers. I’m incredibly excited to be joining, with the rest of the Caviar team, to help build the future of local commerce.”

Jack Dorsey, CEO of Square, the previous owners of Caviar, said: “We are increasing our focus on and investment in our two large, growing ecosystems—one for businesses and one for individuals. This transaction furthers that effort, and we believe partnering with DoorDash provides valuable and strategic opportunities for Square.”

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