DoorDash, the fastest-growing last-mile logistics platform in the U.S., announced that it has entered into a definitive agreement with Square 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.