Caviar

About Caviar

Caviar operates as a premium food delivery platform, connecting diners with high-quality, local restaurants that often do not offer their own delivery service. The company was founded in 2012 by a group of UC Berkeley alumni: Jason Wang, Shawn Tsao, Abel Lin, Andy Zhang, and Richard Din. The founders' journey began after their previous venture, a daily deals app named Munch On Me, started to fail. This experience led them to pivot, launching Caviar with a hands-on approach where they initially handled deliveries themselves to gain deep operational insights and build strong restaurant relationships. This strategy proved successful, as the company became profitable within its first six months.

The business model is centered on a curated marketplace, setting it apart from competitors by selectively partnering with a smaller number of highly-rated and popular local restaurants. This focus on exclusivity and quality attracts a customer base willing to pay a premium for access to these specific establishments. Revenue is generated through multiple streams, including commission fees from partner restaurants (reportedly up to 30%), a service fee charged to customers, and delivery fees that can be dynamic based on distance. The platform offers features such as on-demand ordering, scheduled deliveries, corporate catering options (Caviar for Teams), and GPS tracking for orders in transit. High-quality photography for every menu item is another key feature designed to enhance the user experience.

Caviar's growth trajectory includes several significant milestones. After launching in San Francisco, the company expanded to numerous major U.S. cities. In 2014, just two years after its founding, Caviar was acquired by Square for a reported $90 million in stock, integrating it into Square's suite of services for businesses. This acquisition provided Square with a delivery infrastructure and expanded its reach into the restaurant vertical. The company continued to operate as a distinct brand and, in August 2019, was acquired by DoorDash for $410 million in cash and stock. This subsequent acquisition combined Caviar's premium restaurant portfolio with DoorDash's extensive logistics network, aiming to cater to a broader range of food preferences and expand customer choice.