Uber acquires catering marketplace ezCater for $2.3 billion in all-cash deal

A $2.3 billion all-cash acquisition by Uber targets the catering sector through the purchase of ezCater. This move aims to broaden the service offerings within the company’s Uber Eats division.

Marketplace scale and history

Described as a leading U.S. platform for workplace meals and catering, ezCater operates as a marketplace connecting businesses with large meal providers. The entity functions similarly to Expedia but focuses specifically on catering services.

Founded in 2007, the company generated more than $2.5 billion in gross bookings over the past 12 months, according to data provided by Uber. Its growth trajectory included seven years of bootstrapping before securing its initial $4 million funding round in 2014.

Strategic rationale for restaurants

Dara Khosrowshahi, serving as Uber’s CEO, characterized the transaction as an opportunity for restaurants to access larger customer bases. He noted that catering represents a significant business potential and a major revenue stream for dining establishments.

"With Uber’s reach, we can bring that experience to millions more customers and help restaurants win more of these valuable orders," Khosrowshahi stated regarding the integration of ezCater into the Uber ecosystem.

Broader expansion efforts

This purchase follows a series of strategic actions by Uber to expand its food delivery footprint. The company is currently proceeding with the acquisition of Delivery Hero, valued at $15 billion.

Additionally, Uber continues to invest in and partner with drone delivery firms, including Zipline and Flytrex, to enhance logistical capabilities across its platforms.