After raising $600 million in new financing in May 2019, DoorDash has purchased on-demand food delivery service Caviar for $410 million. The company was previously a rival of DoorDash. Square, the previous owner of Caviar, purchased the company in 2014 for $90 million. It’s since grown, and as CEO of DoorDash, Tony Xu said in a statement, “We have long-admired Caviar, which has a coveted brand, an exceptional portfolio of premium restaurants and leading technology.”
DoorDash is now valued at $12.6 billion and is aiming to give customers more choices with their latest acquirement. Xu says that Caviar “enhances the breadth of our merchant selection.” Now that Caviar is no longer competition for DoorDash, they are mostly rivaled with Grubhub. However, DoorDash came out on top when they surpassed Grubhub’s sales for the first time in May 2019.
There’s also Uber Eats and Postmates to worry about– both companies have plans to go public in early 2020. But the acquisition of Caviar will certainly help DoorDash stay on top as the number one on-demand food delivery service.