Uber to buy US catering platform ezCater for $2.3 billion
UBER•Uber said it would buy ezCater in an all-cash deal for $2.3 billion, expanding its food delivery and workplace meals business. The deal is expected to close in the coming months, subject to regulatory approval.
1. Deal details
Uber said it would buy ezCater, a US catering platform, in an all-cash deal for $2.3 billion. The deal would combine ezCater’s catering business with Uber Eats’ restaurant network and Uber for Business’ corporate customer base.
2. Business figures
Founded in 2007, ezCater lets companies order food from caterers for corporate events, meetings and workplace meals. Uber said ezCater generated more than $2.5 billion in gross bookings over the last 12 months, with average order values exceeding $400, and that the deal is expected to boost margins.
3. Uber expansion
Uber CEO Dara Khosrowshahi said catering can be a huge revenue stream for restaurants. Uber has also agreed to buy Delivery Hero in a $14.8 billion deal aimed at creating the largest food delivery group outside China.
