
Square Buys OrderAhead - prostoalex
https://www.bloomberg.com/news/articles/2017-03-01/square-buys-orderahead-to-grab-pickup-business-at-restaurants
======
thrownblown
Just this last weekend I had my friend tell me about the crap he went through
with OrderAhead when they created a counterfeit website for his Michelin-
starred restaurant.[0]

He reached out and asked for them to hand over the domain. They refused and
said he should be thankful for the free advertising and free work they put
into his business. He got a lawyer and they gave it to him.

Maybe Square/Caviar bought those!

[0] [http://www.geekwire.com/2015/exclusive-thousands-of-rogue-
re...](http://www.geekwire.com/2015/exclusive-thousands-of-rogue-restaurant-
websites-diverting-customers-to-orderahead-deliveries/)

------
kevinastone
> Square won’t take on any of the San Francisco startup’s employees, according
> to a person familiar with the matter.

So they just bought their customer list?

~~~
filipncs
An acquifire, wth??

------
philip1209
Assuming that any money from this deal hits common stock - I hope that some
kind of fast-forwarding was negotiated for the employees. It seems like
anybody who got hired in the last year ostensibly is being let go before
hitting cliff, meaning that they lose stock and get no upside from the
acquisition.

------
swang
i remember "using" orderahead ~4 years ago.

there is a popular lunch spot in sf/soma called hrd. if you've ever been there
you know the line gets ridiculously long. i saw they had orderahead available
so i dled the app, and tried to preorder from the restaurant the next day.

except the app prevented you from ordering during the lunch rush hour.

~~~
avel
I can understand this, though. An Indian restaurant close to me does not
accept orders in Seamless during lunch rush hour (noon - 1pm).

For a restaurant with limited bandwidth that offers pickup and delivery as an
additional method, it makes sense for them to honor only earlier / in time
pickup orders.

------
ng12
> Square won’t take on any of the San Francisco startup’s employees

How does this even work? Give us your database keys and get out?

~~~
tyingq
I would imagine something like the official close on the transaction being a
short time in the future.

Then, an offer of some kind of severance to existing employees...provided they
participate in some kind of handover work during the transition period. If you
don't cooperate, then no severance. Not unlike typical outsourcing.

------
abalone
How exactly does this compare to Caviar? Screenshots show the app used to
support delivery, so sounds like they scaled back to pickup only. Why did
Square buy them when they could have just added a pickup option to caviar? Was
it just to add their merchants to their network?

~~~
philip1209
Quick example: Philz uses both Orderahead and Caviar.

If you are going to a Philz store and want to skip the line, use OrderAhead to
have the drink waiting at the bar. Particularly helpful during a morning rush.

If you are at home and want a bagel delivered to your door, use Caviar.

~~~
abalone
I mean I understand that, but am wondering why Square bought them. Is there
some sort of sophisticated technology that goes into adding a pickup option
when you can already handle _pickups by deliverers_? No, I'd think it's not a
technology acquisition. Are they buying the customer list, as someone asked?
Did they just not pay very much?

------
wojcikstefan
Seems like an interesting strategy:

1\. Launch a new pickup feature.

2\. Buy its main and arguably well established competitor.

3\. Migrate their users and restautants to your service.

4\. Let the actual employees go (probably with a nice severance package).

