Uber to acquire ezCater in $2.3 billion deal

• ezCater generated over $2.5 billion in gross bookings over the last 12 months, with average order values exceeding $400
• The deal is expected to boost Uber's margins by combining ezCater's corporate catering expertise with Uber's existing restaurant and business customer networks
• This acquisition follows Uber's broader expansion strategy in food delivery, including a recent $14.8 billion deal to buy Delivery Hero to create the largest food delivery group outside China

Summary

Deal Overview:

Uber announced on Tuesday it will acquire ezCater, a U.S.-based corporate catering platform, in an all-cash transaction valued at $2.3 billion. The deal is pending regulatory approval and expected to close in the coming months.

Key Companies and Business:

ezCater, founded in 2007, specializes in connecting companies with caterers for corporate events, meetings, and workplace meals. The platform generated over $2.5 billion in gross bookings over the past 12 months, with average order values exceeding $400.

Strategic Rationale:

The acquisition will integrate ezCater's catering business with Uber Eats' extensive restaurant network and Uber for Business' corporate customer base. CEO Dara Khosrowshahi emphasized that catering represents a significant business opportunity and revenue stream for restaurants. Uber stated the deal is expected to be margin-accretive.

Market Context:

This acquisition aligns with Uber's broader strategy to expand its delivery operations globally. The company is also pursuing a $14.8 billion acquisition of Delivery Hero, aimed at creating the world's largest food delivery group outside China.

Market Implications:

The deal strengthens Uber's position in the high-margin corporate catering segment, which features substantially higher order values compared to typical restaurant delivery. By combining ezCater's B2B expertise with Uber's existing infrastructure and customer base, the company is diversifying its food delivery business beyond individual consumer orders into the lucrative workplace meals market. The all-cash structure and expected margin improvement suggest Uber sees this as an immediately value-accretive transaction.