Key Takeaways
- Uber to acquire ezCater for $2.3B in an all-cash deal.
- ezCater brings $2.5B+ in bookings and 140,000+ restaurant partners.
- Uber Eats expands into catering, targeting larger orders and business customers.
Uber Technologies Inc. will acquire U.S. catering platform ezCater for $2.3 billion in cash, expanding group food orders on Uber Eats and strengthening its business catering operations.
Uber Targets High-Value Catering Orders
Uber and Boston-based ezCater announced the agreement Tuesday, saying the acquisition will combine ezCater’s catering expertise with Uber Eats’ consumer and restaurant network and Uber for Business’ corporate relationships.
The deal is expected to close in the coming months, subject to regulatory approvals and other customary closing conditions. Uber said the combination could help restaurants secure larger orders while giving customers a simpler way to arrange food for workplaces, events and social gatherings.
ezCater connects organizations with more than 140,000 restaurants across the United States. Its platform supports workplace meals, meetings, events and recurring corporate catering, while providing businesses with tools to manage food spending and orders.
“Catering is a big business, and can be a huge revenue stream for restaurants,” Uber CEO Dara Khosrowshahi said. He added that Uber’s reach could bring ezCater’s catering experience to more customers while helping restaurants capture more large orders.
ezCater Brings $2.5 Billion In Gross Bookings
The acquisition gives Uber access to a catering business that generated more than $2.5 billion in gross bookings over the trailing 12 months, according to the companies.
ezCater said those bookings grew at a high-teens percentage rate year over year. Its average order value exceeds $400, while the business is profitable on a non-GAAP operating income basis and is expected to increase Uber’s margins, the companies said.
Nihad Rahman, CEO of ezCater, said the company’s team had built a major channel for restaurant partners and workplace catering.
“We’re thrilled to be joining forces with Uber,” Rahman said. “We’re energized to bring our catering and B2B expertise to Uber’s global ecosystem of customers, merchants, and couriers.”
The transaction also could create additional earning opportunities for Uber Eats couriers as catering orders are integrated into the platform.
Uber Expands Food Delivery Business
The deal represents another expansion of Uber’s food business beyond individual meal deliveries. By combining consumer ordering, restaurant relationships, corporate accounts, and catering, Uber aims to serve both everyday customers and organizations ordering food in larger quantities.
For restaurants, the companies said the combined platform could create access to new customers and higher-value orders. For businesses, ezCater’s existing tools and support are expected to complement Uber’s broader business and delivery services.
J.P. Morgan Securities is advising Uber on the transaction, while Evercore is advising ezCater. Covington & Burling and Freshfields are providing legal counsel to Uber, and Davis Polk & Wardwell is advising ezCater.
The acquisition remains subject to regulatory review and other closing conditions. Uber and ezCater cautioned that the expected benefits of the transaction may not be realized on the anticipated timeline or at all.
