Square could soon be entering the food delivery market with the acquisition of Caviar, a startup that delivers high-end meals.
Last month, TechCrunch reported that a deal valued around $100 million was in the works. Over the past few days, the New York Times and Re/code have also reported that a deal is in the works.
Caviar offers meals delivered from high-end restaurants as well as streamlined group ordering and catering. The meals on Caviar aren't available through other delivery sites like GrubHub, but come at a cost; each meal has a $9.99 delivery surcharge.
Founded in July 2012, the startup has recently garnered attention for a $13 million Series A funding round announced at the end of April. The company has raised a total of $15 million.
Caviar would provide Square with another service to offer small businesses, particularly restaurants, as the payments company seeks to attract new customers and find new revenue streams.
Food startups have attracted plenty of funding and attention in the last several years. Food-related businesses attracted $2.8 billion in venture capital in 2013, according to Fortune, with 2014 showing few signs of a cooling market.
With no shortage of competition, Caviar would gain access to a large payments network to help the company acquire new restaurant partners and move beyond the seven cities in which it currently operates. via Mashable
- The Problematic
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