Payment processor Square is sticking with its food delivery service, inking a deal to acquire Main Line Delivery, a startup that has been around for about eight years and delivers food to the Main Line area in Philadelphia.
According to a report by Business Insider, Square’s food delivery service, known as Caviar, is also present in Philadelphia. The acquisition is designed to complement the existing business. Terms of the deal were not disclosed. Dan Ritterman, one of the Main Line founders, will come on board at Caviar.
“We’ve been watching Main Line — and the Philadelphia team knows them well — for their presence in [the Main Line region], their commitment to making delivery easy and for their restaurant relationships,” Gokul Rajaram, Caviar lead at Square, said in an interview with Business Insider. “We believe they have relationships with the best restaurants in Main Line, so it really nicely dovetails with our strategy of partnering with the best restaurants in every metro.”
Rajaram went on to note the acquisition of Main Line, as well as the recent performance of Caviar, is proof that food delivery is a valuable component of the business at Square. “Caviar has shown very strong growth,” he said. “One of the things we announced in our Q3 earnings was that Caviar has grown 11x in weekly order volume since Square acquired Caviar. So, this acquisition is a demonstration that Square is not just continuing to invest in but actually doubling down on Caviar.”
Earlier in the year, reports came out saying Square had held talks to sell Caviar to Uber and GrubHub. The talks ended without anything happening after Caviar received a lowball offer, reported Business Insider.
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