I don't know anything about this deal, but as far as I know Caviar has been growing leaps and bound, with many new cities launched recently very successfully in terms of order volume, etc...
Caviar's growth potential is really strong, (and they are not burning a lot of cash at all - they were operating profitably in SF for almost a year): Grubhub is stuck at the low end of the market, and there is a real opportunity to be a true partner at the high end (which they are doing).
Disclaimer: I am a small investor in Caviar and shared an office with them for 4 months
It's disappointing that a perspective with information from an insider (investor) is down-voted on Hacker News. It's such inside perspectives and unique insight that make Hacker News special.
Caviar's growth potential is really strong, (and they are not burning a lot of cash at all - they were operating profitably in SF for almost a year): Grubhub is stuck at the low end of the market, and there is a real opportunity to be a true partner at the high end (which they are doing).
Disclaimer: I am a small investor in Caviar and shared an office with them for 4 months