Square is stretching its reach into the food delivery game.
As originally reported a few days ago by the New York Times and Re/code, the San Francisco-based mobile payment company has confirmed the acquisition of Caviar, a high-end food delivery company, for $90 million in stock.
Caviar, which operates in large metro areas including Manhattan, Los Angeles, and Chicago, specializes in delivering food, at a markup, from restaurants that don't normally offer online ordering. In Manhattan for instance, you can order a corned beef sandwich from Katz's Delicatessen or dim sum from Nom Wah Tea Parlor despite the businesses being unavailable on Seamless or Delivery.com.
"Everything you love about our product and service will remain the same," writes Caviar founder and CEO Jason Wang in a blog post. "Together we'll double down our mission of delivering premium food through a premium delivery service with no compromises--giving buyers easy access to the food and restaurants they love so much."
Earlier this year, Square rolled out a functionality for Square Register that allows users to pay for purchases ahead of time from their phone, so that their morning latte is ready when they get there, and they can skip the line. Now, the Caviar acquisition seemingly gives Square the delivery infrastructure to bring food orders to customers.
Square, however, was reported to be in a bit of financial trouble after a potential IPO derailed. The terms of the Caviar deal have not been disclosed by either company.
[Images courtesy of Caviar]