Uber will purchase Boston-based ezCater, a prominent US workplace catering platform, for $2.3 billion in cash, adding meal orders for meetings and events from over 140,000 restaurants to its Uber Eats ecosystem.
- ezCater’s catering orders integrated into Uber Eats and Uber for Business
- Deal valued at $2.3 billion in cash
- Targets growing workplace and event catering market
What happened
Uber announced an agreement to acquire ezCater, a US platform specializing in workplace catering, for $2.3 billion in cash. This platform allows businesses to order food for meetings, events, and recurring staff meals from a network of over 140,000 restaurants nationwide. EzCater reported more than $2.5 billion in gross bookings over the last twelve months, growing in the high teens year-over-year.
Why it matters
Catering represents a significant and growing revenue opportunity for the restaurant and food delivery industries. Uber’s CEO highlighted that incorporating workplace and event catering can increase order sizes and introduce new diners to restaurant partners. For restaurants, larger catering orders mean higher revenue per transaction and access to corporate clients.
The acquisition also expands earnings opportunities for Uber Eats couriers by including larger and potentially more frequent group orders. Additionally, this move positions Uber competitively against DoorDash, which has recently expanded its workplace catering services with innovative product offerings such as AI-powered ordering and drone delivery pilots.
What to watch next
Stakeholders will be closely monitoring Uber’s integration progress of ezCater services into its existing Uber Eats and Uber for Business platforms, focusing on the user experience for both corporate customers and restaurants. The impact on order volume and profitability from the catering segment will be key indicators of success.