… Square bought Caviar about five years ago in a deal worth about $90 million. Now, Caviar has found a new home with DoorDash, the on-demand delivery startup that had been under fire for months regarding how it pays its delivery workers. DoorDash is finally starting to do right by its workers by saying it will no longer subsidize wages with tips, though, that has not gone into effect just yet. However, Sage Wilson of workers’ rights organization Working Washington said doing right by workers would also entail backpay.
…It’s worth noting this isn’t the first time Square has tried to rid itself of Caviar. In 2016, Bloomberg reported Square was wanting to sell Caviar for $100 million but couldn’t find a buyer. At the time, Square was reportedly in talks with Uber, Grubhub and Yelp due to Caviar’s excessive losses. Square, however, does not break out specific Caviar earnings.
Meanwhile, Square just reported its Q2 2019 earnings with net revenues of $1.17 billion (44% y/o/y growth), adjusted revenues of $563 million (46% y/o/y growth) and a net loss of $7 million. In Square’s letter to shareholders, the company described how there will now be more clarity regarding how the company operates.