Full Breakdown
Uber Acquires ezCater for $2.3 B to Expand Catering Business
By Drooid · · How we work
Deal Overview
On October 6, Uber Technologies announced an all-cash acquisition of U.S. catering platform ezCater for $2.3 billion. The transaction is subject to regulatory approval and is expected to close in the coming months. Uber said the deal will merge ezCater’s corporate-meal marketplace with Uber Eats’ restaurant network and Uber for Business’s corporate customer base.
Strategic Context
The purchase follows Uber’s July agreement to acquire Germany’s Delivery Hero for roughly $15 billion, a move aimed at creating the largest food-delivery group outside China. Analysts note that DoorDash currently dominates the U.S. food-delivery market; adding ezCater’s high-value group orders is intended to narrow that gap. Uber’s delivery segment accounted for about 37 % of total revenue in the second quarter and has been the company’s fastest-growing business line.
Business Metrics
- ezCater, founded in 2007, partners with over 140,000 restaurants.
- The platform generated more than $2.5 billion in gross bookings over the trailing 12 months.
- Average order values exceed $400, and the business is profitable on a non-GAAP operating-income basis, which Uber expects to be “margin accretive.”
Official Statements & Responses
Uber CEO Dara Khosrowshahi said the acquisition gives restaurants a new channel to win large, profitable orders and expands Uber Eats’ reach to “millions more customers.” A joint press release described the deal as a way to bring catering options to both workplace and social gatherings while creating additional earning opportunities for Uber Eats couriers.
Verbatim Quotes
- “Importantly, bringing workplace buyers into the ecosystem supports the membership flywheel,” — Scott Devitt, rosenblatt analyst