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DoorDash buys Square's food delivery platform

DoorDash Inc. said Aug. 1 the company will buy Square Inc.'s food delivery platform Caviar for $410 million in cash and DoorDash preferred stock.

The California-based on-demand food delivery startup plans to leverage Caviar's outreach and technology to drive the company's growth with this transaction.

Caviar's team, including its lead, Gokul Rajaram, will join DoorDash after the takeover.

"The acquisition further enhances the breadth of our merchant selection, enabling us to offer customers even more choice when they order through DoorDash," said DoorDash CEO Tony Xu.

The deal, which is subject to customary closing conditions, is expected to close in 2019.