- The acquisition will add 7,000 restaurants and related hospitality businesses to AmEx’s network.
- Additionally, AmEx is acquiring Rooam, a contactless payments platform.
American Express is expanding its presence in the dining industry with the acquisition of restaurant booking platform Tock for $400 million, Reuters reported. This move aims to enhance AmEx’s presence in the dining sector, which saw $100 billion in spending on its cards last year.
By adding Tock’s 7,000 restaurants, wineries, and hospitality businesses to its network, AmEx seeks to offer even more exclusive perks to its premium customers. American Express announced on Friday its purchase of Tock, a restaurant booking platform owned by Squarespace, for $400 million in an all-cash deal.
This acquisition is part of AmEx’s ongoing efforts to strengthen its presence in the dining industry, a key sector for the credit card giant. In 2019, AmEx acquired Resy, an online restaurant reservation platform that provides special access and perks to AmEx cardholders.
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Targeting Premium Customers
The acquisition of Tock will significantly enhance AmEx’s network by adding 7,000 new restaurants, wineries, and hospitality businesses. This expansion will allow these establishments to target better AmEx’s premium customers, who are known for their high spending habits. By offering exclusive reservations, early notifications, and cashback on certain bookings, AmEx aims to justify its higher annual fees and attract affluent consumers.
In addition to Tock, AmEx is also acquiring Rooam, a contactless payments platform used by restaurants, bars, and music venues. Although the financial details of this acquisition remain undisclosed, this step represents AmEx’s broader strategy to support small and medium enterprises. Rooam will complement Tock by providing seamless payment solutions, enhancing the overall customer experience in the dining and entertainment sectors.
Squarespace, which bought Tock for around $400 million in 2021, will reportedly sell it for the same amount as it prepares to go private in a nearly $6.9 billion transaction with Permira. This sale will help Squarespace streamline its operations and focus on its core business as it transitions to private ownership.
