Aug 2, 2019

The consolidation of food delivery apps begins with Doordash’s Caviar acquisition

Photo: Smith Collection/Gado/Getty Images

It was only a matter of time before one of the food delivery companies bought another. And yesterday, DoorDash announced it agreed to buy Caviar from Square for a whopping $410 million in cash and stock. It paid just over $44 million for it in 2014.

Why it matters: Square was trying to sell the food delivery company at least as far back as late 2015, as Bloomberg reported shortly after, and a number of companies like Uber, GrubHub and Yelp passed on it. At the time, Square was suggesting a price tag of about $100 million, which companies balked at.

  • And, according to a source familiar with DoorDash's thinking, it sees Caviar's partner restaurants and strong markets as additive to its own (meaning, not as much current overlap), making it a valuable asset to acquire, though the apps will remain separate for the time being. Still, whether it's worth the price is up to interpretation.
  • Caviar's certainly grown since then, and bolstered its corporate ordering business via its acquisition last year of Zesty.

Bonus: Postmates also took a close look at Caviar as part of the formal process Square recently ran, a source tells Axios, but ultimately didn't make an offer, finding it overpriced. It's unclear who else, if anyone at all, also seriously considered or made bids.

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DoorDash's new policy will treat tips as tips

Photo: Smith Collection/Gado/Getty Images

DoorDash is finally beginning to roll out a new pay model for its delivery drivers that will treat customer tips as additional earnings, after announcing nearly a month ago that it will shift its policy.

Flashback: DoorDash's two-year-old pay model, a twist on the "tipped wages" model familiar to many service workers like waiters, came under fire last month. Critics said its approach was deceptive to customers.

Go deeperArrowAug 22, 2019

Domino's Pizza dishes tech with its pies

Photo: Scott Olson/Getty Images

Domino's Pizza has shunned delivery app giants Uber Eats, DoorDash and GrubHub, and the pizza chain's CEO confirmed the company has no plans of collaborating with them any time soon.

Why it matters: While its No. 1 competitor, Yum Brands' Pizza Hut, has partnered with and taken a stake in the to-go dining app GrubHub, Domino's has banked on its technological investments in delivery and user operations to beat out competition, the Wall Street Journal (subscription) reports.

Go deeperArrowAug 3, 2019

Experiencing a music festival with tech upgrades

Outside Lands festival in San Francisco, August 2019. Photo: FilmMagic/FilmMagic

Imagine being at a music festival, far enough from the stage that you can’t hear your favorite band well at all — except when you pull out your phone, log into a special WiFi network and instantly get the live music crystal clear into your earphones.

What's happening: Mixhalo, a San Francisco company, is making this possible, and this weekend it was quietly testing its tech at the Outside Lands music festival.

Go deeperArrowAug 12, 2019