Payment service Square acquires Caviar
A merger or acquisition deal can make it possible for two companies to achieve things they may not have been able to do as separate entities. When two business models end up being complementary, joining forces can help a business become a more competitive player in the market.
This idea is at work with the recent acquisition of Caviar, by Square, a company that creates technology that enables smartphones to act as credit card readers, allowing for fast payment transactions. Caviar is a company that offers a curated food delivery service.
According to an article in Tech Crunch, Caviar stands out from other similar companies because it is able to provide a delivery service to companies that lack the infrastructure to have their own delivery service. Because of this aspect, Caviar's capabilities can contribute to the delivery service that Square offers. This acquisition could help the companies compete with the numerous food delivery startups in the market today.
"Caviar has made it easy for customers to get food delivered from some of the most popular, local restaurants in the country," said Jason Wang, co-founder and CEO of Caviar in a press release on Square's website. "With Square's national scale and commitment to making commerce easy, we'll be able to help buyers get food delivered from more of their favorite restaurants, while helping restaurants reach new customers and simplify their operations."
As has been discussed previously on this blog, companies that offer complementary services can often strengthen each other by joining forces. This is what these two companies look to do as they combine and work on finding ways to provide better services for their respective customer bases.