How A Sandwich Craving Birthed A $410M Food Delivery Giant

Shawn Tsao initially envisioned a career in architecture, but his path took a dramatic turn when he and his close friends from the University of California, Berkeley, ventured into the food industry.

Their first attempt was a daily deals app, but it didn't resonate. However, a pivotal conversation at a Berkeley pub in 2011 reshaped their direction, leading to the birth of Caviar.

It was the simple craving for a sandwich from Ike's Place that ignited the idea. Instead of emulating the "Groupon for food" model, Tsao and his pals envisioned becoming the "Uber for food."

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Caviar's unique proposition was its collaboration with restaurants that lacked delivery services, offering a curated food delivery experience.

Tsao realized that if Caviar could sign, say, the "best burger or best taco" in the neighborhood, customers would start talking.

By 2014, Caviar's rapid ascent caught the eye of Jack Dorsey's payment platform, Square (now rebranded as Block). 

Square acquired Caviar in an all-stock deal for a reported $90 million, and then flipped it to DoorDash for $410 million.

“A lot of the best companies solve the simplest of problems," Tsao told CNBC. "For us, it was: ‘Give me a sandwich.’” 

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This story is part of a series of features on the subject of success, Benzinga Inspire.

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