Uber has agreed to acquire U.S. workplace-catering platform ezCater for $2.3 billion in cash, expanding the company’s push into higher-value corporate food orders.
EzCater specializes in catering for meetings, workplaces and corporate events rather than the smaller individual orders that dominate conventional restaurant delivery.
The company generated more than $2.5 billion in gross bookings over the past year, with average orders exceeding $400.
That order profile is strategically important for Uber.
The company plans to connect ezCater with the restaurant network of Uber Eats and the corporate relationships already served through Uber for Business. The combination gives Uber another route into enterprise spending while potentially increasing the amount of business restaurants can generate through its platform.
The transaction also continues Uber’s expansion beyond its original ride-hailing operation.
Delivery has become a major part of the company, and workplace catering offers different economics from individual meal delivery because orders are generally larger and tied to recurring business demand.
Uber has been expanding its delivery business aggressively. In July, the company agreed to acquire Delivery Hero in a $14.8 billion transaction aimed at creating the largest food-delivery group outside China.
The ezCater transaction remains subject to regulatory approval and is expected to close in the coming months.
For investors, the central question is whether Uber can integrate ezCater while preserving the economics that make large catering orders attractive.
If successful, the transaction would give Uber a stronger position in a part of food delivery where larger orders and corporate customers could produce better margins than conventional consumer deliveries.
