Square, Inc.

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

Doordash sign and logo
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.

DoorDash to acquire food delivery rival Caviar

DoorDash order pick-up sign at a restaurant. Photo: Smith Collection/Gado/Getty Images

DoorDash has agreed to acquire food delivery rival Caviar from Square for $410 million in cash and stock, the companies announced on Thursday.

Why it matters: It was only a matter of time before consolidation hit this ultra competitive industry. Plus, Square has been looking to sell Caviar at least as far back as 2015, a year after it purchased it.