Food delivery startup DoorDash announced today that it has entered into an agreement to purchase Caviar from its parent company, Square, for $410 million dollars in a combination of cash and preferred stock.

The press release laid out the rationale for the deal, stating:

The acquisition underscores both DoorDash and Caviar’s strategic commitment to merchant selection. The addition of Caviar’s premium restaurants, with whom DoorDash will work closely to drive their growth, will enable the combined organization to cater to every food preference and occasion. Caviar’s complementary geographic footprint provides DoorDash with a significant number of new and unique customers, who will benefit from an even broader set of merchants.

Square acquired Caviar in 2014 for a reported $90 million, and reportedly tried to sell it just two years later but couldn’t find a buyer at the price the company wanted. A little more than a year ago Square acquired the assets of Zesty in a bid to bolster its corporate catering services.

But ultimately Square is in the business of transactions, not delivering the food itself, so offloading Caviar makes sense. Not having to deal with Caviar will help Square focus on the restaurant point of sale software platform that it launched last year that helped streamline orders from third-party services like DoorDash.

For its part, DoorDash has been making headlines all yearL raising a billion dollars in funding, becoming the first third-party food delivery startup to service all fifty states, and sticking by, and then ultimately caving in and changing a controversial tipping policy for its delivery drivers.

DoorDash’s deal to acquire Caviar is expected to close by the end of this year.

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