Uber to Buy ezCater for $2.3 Billion to Expand Workplace Catering
Uber said Tuesday it will acquire U.S. catering platform ezCater for $2.3 billion in cash, adding a workplace-meals business that generated more than $2.5 billion in gross bookings over the past year to its Uber Eats and Uber for Business operations.
Uber said on Tuesday that it will acquire ezCater, a U.S. platform for workplace catering, in an all-cash transaction valued at $2.3 billion, according to Reuters.
Founded in 2007, ezCater connects businesses with restaurants and caterers for meetings, corporate events and recurring workplace meal programs, according to Reuters. The company said the combination would link ezCater’s catering operation with the restaurant network of Uber Eats and the corporate customer base of Uber for Business.
A push into larger, employer-paid orders
TechCrunch reported that ezCater generated more than $2.5 billion in gross bookings over the past 12 months, citing figures provided by Uber. Uber Chief Executive Dara Khosrowshahi described catering as a significant revenue opportunity for restaurants and said Uber’s scale could bring those group orders to many more customers, according to both reports.
The transaction still requires regulatory approval and is expected to close in the coming months, according to Reuters. TechCrunch noted that the purchase follows other recent expansion moves in Uber’s delivery business, including a separate process to acquire Delivery Hero and investments involving drone-delivery partners.
Reporting based on coverage by Reuters and TechCrunch.