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Square + Caviar = Yummy Gourmet Food Delivery
By: Cindy Wendland
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Square leveled the playing field for businesses when they offered an amazing opportunity for anyone to accept credit card payments simply by attaching a small device to their smartphone. Their focus was on small vendors, and that’s who is using the product. Now they have to earn more revenue, so they're expanding their products to include services that use their product.

Financial analysts like Square. They state the three key successes at Square are the quality products, the high number of accounts, and the respectably priced transaction fees. Square’s problem is building enough volume to make a decent profit on those small margins, so they purchased Caviar. The name suggests fine food, and indeed it is. Caviar is a gourmet food delivery service from restaurants that don’t normally deliver. Ordering takeout has a whole new meaning. It reminds one of the Mrs. Doubtfire scene where his rubber suit catches on fire trying to make a gourmet meal for the family. He ends up paying an exorbitant sum to have a nice restaurant deliver a meal.

Square and Caviar are offering that nice gourmet service, but not at the exorbitant fee. An 18% gratuity is included as well as the delivery fee of $9.99 — with an August special of $4.99. If that seems like a lot, consider parking costs and gas and the comfort of lounging at home while eating that good food. Then it seems like quite a deal.

The partnership makes sense, but is Square going to buy up one of every type of its customers in order to capitalize on the revenue? Square is offering complete point-of-sale services for restaurants, cafes, and retail stores. From a branding perspective, Square needs to consider what they want to be known for, besides mobile payments.

   

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About the Author
Cindy Wendland has a background in marketing and finance. She is the creative director for an online men's health magazine, BrainBrawnBody.com, and she gets to write their leisure/travel blog. She is also a web designer helping her clients with online community engagement, websitesbywendland.com. Prior to her web years, she worked in pharmacy consulting.
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