Square, a San Francisco mobile payments company, has purchased food startup Caviar for around $100 million, according to the earliest rumors about the acquisition.
Caviar is a food startup founded by CEO and Co-Founder Jason Wang and a few friends as a way to bring foods from favorite restaurants to customers who do not desire delivery food from other places. The startup brings restaurant delivery from restaurants that do not yet have a delivery service established.
With Square’s purchase, the company can now take its mobile payment system to customers who will likely use the company’s mobile payment system to regularly order food that can be delivered to their home in as little as thirty minutes to an hour or less.
Square CEO Jack Dorsey said that the Caviar acquisition “Caviar’s curated, seamless delivery experience is exactly the kind of service we want to provide buyers and sellers. By making delivery such a fast, friendly, and easy process, Caviar gives time back to restaurants so they can focus on what they do best – cooking great food for their customers.”
As for startup Caviar, the new company is excited about the opportunity to work with Square: “Our ultimate vision aligns with Square’s: to provide local merchants with the best tools to grow and sustain their businesses.”
Square, as are so many companies, looking for new ways to drive additional revenue. With the company’s mobile payment system, Square is extremely compatible with customer businesses and retail in general, so it is not a surprise to see Square head in this direction.
For now, Caviar says that it will continue to operate as a separate business from Square.