As per the terms of the deal, the transaction is a combination of $410m in cash and DoorDash preferred stock.
Caviar , a part of Square, connects diners with restaurants through convenient delivery, pickup, or catering services. The company was established in 2012 and acquired by Square in 2014.
DoorDash is currently integrated with Square for Restaurants point of sale (POS) that allows the acceptance of online and in-person orders for merchants.
The deal is expected to create a highly differentiated entity with a new brand and wide-ranging selection, as will allow DoorDash to reach more customers as well.
DoorDash CEO Tony Xu said: “Today’s announcement is another important step forward on our mission to empower local economies. We have long-admired Caviar , which has a coveted brand, an exceptional portfolio of premium restaurants and leading technology.
“The acquisition further enhances the breadth of our merchant selection, enabling us to offer customers even more choice when they order through DoorDash .
The acquisition is currently subject to certain closing conditions, including regulatory approvals. It is expected to close this year.