Square explored selling off its food delivery division, report says
By Fast Company
Earlier this year, point of sale company Square may have explored selling its food delivery business, Caviar, a report from Bloomberg says. The company reportedly entertained offers from Uber, GrubHub, and Yelp, but wanted $100 million for the division. Apparently, Square deemed the offers floated too low.
Square acquired Caviar, a delivery infrastructure service for higher-end restaurants, in 2014. The following year it bought up Fastbite, a sub-15-minute lunch delivery service, and folded it into Caviar. The idea was that by having a food delivery service, Square could better sell its management tools to restaurants. While the acquisition may have proven a good way to cross-sell its software, food delivery is a highly competitive space with big incumbents like GrubHub taking up fat slices of the market.
This year, Caviar shuttered services in a few of its markets and may be looking to reduce some of its losses. That said, the company is not currently shopping Caviar around, a source close to the matter says.
First appeared at FC