Uber has agreed to acquire US catering and workplace meals platform ezCater for $2.3 billion in cash, expanding Uber Eats into corporate catering and larger food orders.
The deal will combine ezCater’s catering platform with Uber Eats’ restaurant and delivery network and Uber for Business’ relationships with corporate customers. Uber said the acquisition would give restaurants access to larger orders while making it easier for businesses and other customers to arrange meals for meetings, events and group gatherings.
Founded in 2007, ezCater operates a platform that allows businesses to order food from more than 140,000 restaurants across the United States. Its services cover individual meetings, corporate events and recurring enterprise meal programmes, with tools for managing orders and food spending.
The platform generated more than $2.5 billion in gross bookings over the 12 months before the deal, according to Uber. Its average order value exceeds $400, significantly higher than typical individual food-delivery orders. The company is also profitable on a non-GAAP operating income basis and is expected to add to Uber’s margins following the acquisition.
For Uber, the acquisition provides an established route into a segment of food delivery built around larger and potentially more valuable transactions. Rather than relying primarily on individual meals ordered by consumers, Uber will gain access to corporate customers purchasing food for groups and recurring workplace programmes.
“Catering is a big business, and can be a huge revenue stream for restaurants,” Uber CEO Dara Khosrowshahi said, arguing that Uber’s reach could help restaurants secure more high-value orders.
The acquisition is the latest in Uber’s broader effort to scale its delivery business. The company is also pursuing its planned acquisition of Delivery Hero’s food-delivery operations in several markets in a deal valued at about $14.8 billion. Uber has additionally invested in drone-delivery companies including Zipline and Flytrex as it looks to expand how food and other goods are delivered.
Uber said the ezCater transaction is expected to close in the coming months, subject to regulatory approval and other customary closing conditions. The deal will allow Uber Eats to add catering to its existing consumer food-delivery business while giving Uber for Business another service for its corporate customers.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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