Uber to Acquire ezCater for $2.3 Billion to Boost Catering
Uber expands Uber Eats into the catering market with a $2.3 billion all-cash acquisition of US workplace catering platform ezCater.
Uber Technologies is making a massive move to dominate the food delivery landscape by expanding far beyond individual meals. The ride-hailing and food delivery giant has agreed to purchase the US-based workplace catering platform ezCater in an all-cash deal valued at $2.3 billion.
This strategic acquisition aims to integrate ezCater’s specialized business-to-business (B2B) expertise with the existing massive network of Uber Eats and Uber for Business. By doing so, Uber intends to transform how offices, events, and social gatherings handle food logistics.
A High-Value Leap into Group Dining
While Uber Eats has long been a staple for individual consumer orders, ezCater brings a different scale of operation to the table. The platform allows businesses to source food from over 140,000 restaurants across the United States, managing everything from routine workplace meals to large-scale corporate events and recurring catering needs.
The financial profile of ezCater makes it an attractive addition to Uber’s portfolio:
- Massive Bookings: The platform generated more than $2.5 billion in gross bookings over the last 12 months.
- Rapid Growth: The business has maintained a high-teens year-on-year growth rate.
- High Order Value: Unlike standard single-meal deliveries, ezCater's average order value exceeds $400, making it a much higher-value segment for both restaurants and delivery partners.
- Profitability: The company is already profitable on a non-GAAP operating income basis and is expected to improve Uber's overall margins.
CEO Perspectives on the Mega-Deal
Uber CEO Dara Khosrowshahi highlighted the immense revenue potential inherent in the catering sector. “Catering is a big business, and can be a huge revenue stream for restaurants,” Khosrowshahi stated, noting that Uber's global reach will help bring ezCater’s specialized experience to a much wider audience.
Nihad Rahman, CEO of ezCater, echoed this sentiment, suggesting that the company's B2B expertise will find a powerful new home within Uber's vast ecosystem of merchants, customers, and couriers.
What This Means for the Ecosystem
The merger is designed to create a win-win-win scenario for all stakeholders involved in the food delivery economy:
- For Restaurants: They gain access to much larger, bulk orders and a new stream of corporate customers that they might not have reached through standard delivery apps.
- For Consumers and Businesses: A more integrated platform will make it easier to organize food for workplace gatherings, social events, and large meetings.
- For Couriers: Uber expects the deal to generate additional earning opportunities for its delivery partners through these high-value catering assignments.
The transaction is expected to finalize in the coming months, pending standard regulatory approvals and customary closing conditions. Financial advisory for the deal is being handled by J.P. Morgan Securities for Uber and Evercore for ezCater, with legal counsel provided by Covington & Burling and Freshfields US for Uber, and Davis Polk & Wardwell for ezCater.