DoorDash co-founder and CEO Tony Xu Photo by Kimberly White/Getty Images for TechCrunch

DoorDash has announced it’s acquiring Caviar, a rival food delivery service owned by Square, for $410 million in cash and preferred stock. Caviar’s entire team, including Gokul Rajaram who heads it, will join DoorDash once the acquisition is closed. Square acquired Caviar for $90 million in 2014, but was reported [by Bloomberg] to have tried to sell it to several prospective suitors, including Uber, GrubHub and Yelp.

Bloomberg reports Square couldn’t find a buyer willing to pay a high enough price, with Uber having floated an offer that it considered too low. Caviar loses money, but its losses aren’t disclosed in Square’s financial statements.

Square CEO Jack Dorsey image: JD Lasica on Flickr

The DoorDash acquisition builds on an already existing partnership with Square, which involves an integration with Square for Restaurants point of sale, and a partnership to provide instant rewards when customers use their Square debit card. “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.” Square CEO Jack Dorsey said in a statement.

“…We have long-admired Caviar, which has a coveted brand, an exceptional portfolio of premium restaurants and leading technology.” DoorDash CEO Tony Xu also said. “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.” He said.

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