SAN FRANCISCO, Aug. 1, 2019 /PRNewswire/ -- DoorDash, the
fastest-growing last-mile logistics platform in the U.S., announced
today that it has entered into a definitive agreement with Square
(NYSE: SQ) to acquire Caviar for $410
million in cash and DoorDash preferred stock. DoorDash's
acquisition of Caviar creates a highly differentiated company with
a unique brand and wide-ranging selection.
The acquisition underscores both DoorDash and Caviar's strategic
commitment to merchant selection. The addition of Caviar's premium
restaurants, with whom DoorDash will work closely to drive their
growth, will enable the combined organization to cater to every
food preference and occasion. Caviar's complementary geographic
footprint provides DoorDash with a significant number of new and
unique customers, who will benefit from an even broader set of
merchants.
Furthermore, DoorDash will benefit from Caviar's leading
technology and exceptional team, who are deeply passionate about
the restaurant delivery experience for merchants, couriers and
customers. The Caviar team, including Caviar Lead Gokul Rajaram,
will join DoorDash once the acquisition closes.
The transaction continues to build on the partnership between
DoorDash and Square. DoorDash is currently integrated with Square
for Restaurants point of sale, which streamlines the acceptance of
online and in-person orders for merchants, and in the second
quarter Cash Boost partnered with DoorDash to provide instant
rewards when customers use their Cash Card at DoorDash.
Tony Xu, CEO of DoorDash, said:
"Today's announcement is another important step forward on our
mission to empower local economies. We have long-admired Caviar,
which has a coveted brand, an exceptional portfolio of premium
restaurants and leading technology. The acquisition further
enhances the breadth of our merchant selection, enabling us to
offer customers even more choice when they order through DoorDash.
We look forward to welcoming the Caviar team to DoorDash and
expanding our partnership with Square in the future."
Gokul Rajaram, Caviar Lead, said:
"Caviar has built a trusted brand with customers and many of the
best restaurants. DoorDash has national scale, complementary
restaurant selection, a tremendous logistics platform, and a team
that shares our passion and commitment to better serve restaurants,
couriers, and customers. I'm incredibly excited to be joining, with
the rest of the Caviar team, to help build the future of local
commerce."
Jack Dorsey, CEO of Square, said:
"We are increasing our focus on and investment in our two large,
growing ecosystems—one for businesses and one for individuals. This
transaction furthers that effort, and we believe partnering with
DoorDash provides valuable and strategic opportunities for
Square."
The transaction is subject to certain closing conditions,
including regulatory approvals, and is expected to close in
2019.
About DoorDash
DoorDash is a technology platform that
connects customers with their favorite local and national
businesses in over 4,000 cities and all 50 states across
the United States and Canada. Founded in 2013 by Stanford students Tony
Xu, Andy Fang, and
Stanley Tang, the company currently
reaches 80 percent of U.S. households and has the widest selection
of restaurants in the U.S. DoorDash empowers merchants to grow
their businesses by offering on-demand delivery, data-driven
insights, and better in-store efficiency, providing delightful
experiences from door to door. By building the last-mile delivery
infrastructure for local cities, DoorDash is bringing communities
closer, one doorstep at a time. Read more on the DoorDash blog or
at www.doordash.com.
About Caviar
Caviar is an all-in-one food ordering
platform that connects diners with the most crave-worthy
restaurants, via convenient delivery, pickup, or catering. Caviar,
part of Square's suite of services for businesses, partners with
thousands of restaurants in hundreds of cities across the U.S., to
grow their sales and bring them new customers. Caviar also provides
economic empowerment and flexible earning opportunities for
couriers, including being the first company in the industry to
offer an occupational accident insurance policy that protects all
couriers when they're delivering on the Caviar platform at no cost
to them. Caviar was founded in 2012 and acquired by Square in 2014
– to learn more, visit trycaviar.com.
About Square
Square, Inc. (NYSE: SQ) revolutionized
payments in 2009 with Square Reader, making it possible for anyone
to accept card payments using a smartphone or tablet. Today, we
build tools to empower businesses and individuals to participate in
the economy. Sellers use Square to reach buyers online and
in-person, manage their business, and access financing. Restaurants
use Caviar to offer diners delivery, group ordering, catering, and
pickup. And individuals use Cash App to spend, send, and store
money. Square has offices in the United
States, Canada,
Japan, Australia, Ireland, and the UK.
SQUARE SAFE HARBOR STATEMENT
This press release contains forward-looking statements within
the meaning of the Safe Harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical fact could be deemed forward-looking, including, but
not limited to, statements regarding the proposed acquisition of
Caviar from Square (the Company), the Company's intentions of
reinvesting in its ecosystem, and general business outlook. Such
statements are subject to a number of known and unknown risks,
uncertainties, assumptions, and other factors that may cause the
Company's actual results, performance or achievements to differ
materially from results expressed or implied in this press release.
Investors are cautioned not to place undue reliance on these
statements. Actual results could differ materially from those
expressed or implied, and reported results should not be considered
as an indication of future performance.
Risks that contribute to the uncertain nature of the
forward-looking statements include, among others, the possibility
that the transaction will not close or that the closing may be
delayed; the ability to secure required regulatory approvals or
otherwise satisfy other closing conditions in a timely manner, or
at all; the proposed transaction may not advance the parties'
business strategies; the ability of DoorDash to retain the
customers, merchants and couriers of Caviar; the ability to realize
the expected benefits from the transaction in the expected time
period, or at all; disruptions from the transaction on ongoing
operations; potentially incurring significant transaction costs;
and unknown, underestimated, or undisclosed commitments or
liabilities, as well as other risks and uncertainties relating to
the Company listed or described from time to time in the Company's
filings with the Securities and Exchange Commission (the SEC),
including the Company's most recent Quarterly Report on Form 10-Q,
which is on file with the SEC and available on the investor
relations page of the Company's website. All forward-looking
statements are based on information and estimates available to the
Company at the time of this press release and are not guarantees of
future performance. Except as required by law, the Company assumes
no obligation to update any of the statements in this press
release.
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SOURCE DoorDash