Square's New Approach to Food Delivery
Square (NYSE: SQ) sold its food delivery business, Caviar, to DoorDash last summer in a deal worth $410 million. But now the payments company wants back in.
Square launched On-Demand Delivery this week, to provide its Online Store to users to offer food delivery. Square is partnering with Postmates to facilitate deliveries, or restaurants can use their own couriers. Merchants pay a flat fee to Square, and Square passes through charges from its delivery partner.
On-Demand Delivery is Square's latest effort to fulfill its merchants' needs as social distancing measures have forced more consumers to place orders online. The move leverages Square's network of merchants to find margin in the cutthroat food delivery business while protecting its merchants' interests.
Source Fool.com
