Caviar, the premium restaurant delivery service, was most recently owned by payments-services company Square, which bought the firm in 2014 for about $90 million when it was just an early-stage startup.
“We have long-admired Caviar, which has a coveted brand, an exceptional portfolio of premium restaurants and leading technology,” said DoorDash CEO Tony Xu in a statement. Xu notes that the deal “enhances the breadth of our merchant selection,” giving customers more choices.
According to Square’s release, the cash-and-stock deal — which is expected to close later this year — builds on the existing partnership between DoorDash and Square for Restaurants. Square for Restaurants is a software platform designed to help small businesses integrate online delivery orders with in-restaurant operations. The product was introduced last year.
To many observers, the launch of Square for Restaurants helped justify Square’s acquisition of Caviar, which perplexed some when it was announced.
According to a DoorDash spokesperson, the services will remain as individual brands for the time being and the company will ultimately do the best for each brand, whether that’s combining them or keeping them separate.
DoorDash has faced scrutiny in recent months over its controversial tipping policy for delivery workers, where some tips contributed to their base pay. Just last week, Xu said it would revisit its tipping policies following a New York Times report that put the issue once again in the spotlight.
Caviar no longer applies tips towards worker payments, but settled a class-action suit for $2.2 million in 2018 for not passing on tips from customers to its workers.
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