Square lately has cast a much wider net, expanding from its core point-of-sale payments business into e-commerce, business financing and even peer-to-peer payments. But its next move might sound a bit more puzzling: It’s acquiring tony food delivery service Caviar.
Confirming reports over the weekend in The New York Times and Re/Code, Square announced this acquisition on Monday. It didn’t reveal any financial details, though the Times reported it negotiated a $90 million all-stock deal.
So why on earth would Square want a food delivery startup? The answer lies in Square’s recently intensified focus on its restaurant and dining merchants. Square has always been present in the food service industry, with restaurants and cafes using its reader to process credit card payment and handle point-of-delivery sales. According to the company, Square already has 50,000 restaurants using its payment services.
But last year’s introduction of Square…