Deal gives Uber Eats access to more than 140,000 US restaurants
Uber Technologies announced Tuesday that it has agreed to acquire catering and workplace meals platform ezCater for $2.3 billion, a transaction that would add ezCater’s network of more than 140,000 U.S. restaurants and more than $2.5 billion in annual gross bookings to Uber Eats.
The deal gives Uber Eats access to ezCater’s network, which is used primarily in workplaces in the U.S. and supports meetings, events, and recurring enterprise catering needs. EzCater is used by more than 140,000 restaurants across the country and generates more than $2.5 billion in annual gross bookings, according to Uber. The company said ezCater’s average orders come in at more than $400.
“Catering is a big business, and can be a huge revenue stream for restaurants,” Uber Chief Executive Dara Khosrowshahi said.
The acquisition arrives as Uber looks to broaden its delivery business beyond single meal orders. In the quarter ended June 30, Uber’s revenue was driven by a 25% growth in gross bookings from its delivery business, reflecting higher volumes and more active users. On that quarter’s earnings call, Khosrowshahi told investors the company is shifting beyond single meal deliveries into large group orders and in-store pick-ups, areas where he said the company sees more room for expansion.
The ezCater deal follows Uber’s July $14.8 billion takeover bid for Delivery Hero, a German company whose acquisition would merge two of the world’s largest food-delivery platforms. Together, the two transactions reflect Uber’s effort to expand its food delivery business as it looks beyond its core ride-hailing service.
Uber said the ezCater transaction is expected to close in the coming months, subject to regulatory approvals and other customary closing conditions.