Uber bets $2.3 billion on ezCater to narrow gap with DoorDash
UBER•Uber said it would buy ezCater for $2.3 billion in an all-cash deal, targeting corporate events, meetings and workplace meal orders. ezCater generated more than $2.5 billion in gross bookings over the past 12 months, and Uber said its average order values exceed $400.
1. Deal targets corporate meals
Uber said it would buy U.S. catering platform ezCater in an all-cash deal for $2.3 billion. Founded in 2007, ezCater lets companies order food from caterers for corporate events, meetings and workplace meals.
2. Bookings and deal terms
Uber said ezCater generated more than $2.5 billion in gross bookings over the past 12 months and has average order values above $400. The deal would combine ezCater's catering business with Uber Eats' restaurant network and Uber for Business' corporate customer base; it is subject to regulatory approval and expected to close in the coming months.
3. Uber delivery business
Uber said the deal is expected to boost margins. Delivery accounted for about 37% of Uber's second-quarter revenue, and the company's business-focused segment recorded gross bookings growth of more than 40% in the quarter.
