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Business

DoorDash buys delivery service caviar for $ 410 million




Photo: Tibrina Hobson (Getty)

DoorDash, the delivery service known to screw its delivery workers with an elaborate tipping skimming scheme, procures allegedly exclusive Caviar food delivery platform in a deal worth $ 410 million.

Caviar & # 39; s parent company Square announced the news during its second quarter earnings Thursday. According to the shareholder letter for the second quarter, the multimillion-dollar sale will be paid for with a mix of cash and DoorDash preferred shares. It comes nearly two years after Square allegedly was looking to unload Caviar, but had trouble finding a buyer.

In a statement, Square CEO Jack Dorsey – who also happens to be the CEO of a strong Internet site worst challenger – said in a statement that his company "increased our focus on and investment in our two large, growing ecosystems. – one for businesses and one for individuals. "

" This transaction promotes that effort, and we believe that working with DoorDash provides valuable and strategic opportunities for Square, "he added.

Tony Xu, co-founder of DoorDash and CEO, pointed out the acquisition in a statement as an integral part of expanding offerings to sellers, and more doubtfully, "another important step forward in our mission to strengthen local economies." (Delivery apps, and especially DoorDash, have been accused of pissing and even damaging local eateries.)

"We have long admired Caviar, which has a coveted brand, an exceptional portfolio of top-notch restaurants and leading technology," said Xu. "The acquisition improves the breadth of our vendor selection, which allows us to offer customers even more choices when ordering through DoorDash. We look forward to welcoming the Caviar team to DoorDash and expanding its collaboration with Square in the future."

The acquisition will be a key time for DoorDash as the company struggles with the fallout over its controversial pay model, which uses customer tips to offset the bid's delivery per earnings. After months of pressure and having previously refused to forget the case, Xu switched courses last week according to a recent report from the New York Times, saying in a series of tweets that DoorDash would change its model.

"Going forward, we are changing our model – the new model will ensure that Dashers & # 39; s earnings will increase by the exact amount one customer tips about each order, "Xu said at the time." We will have specific details for the next few days. "



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