Uber acquires corporate catering platform ezCater for $2.3 billion

Uber has agreed to acquire American corporate catering platform ezCater. The deal is valued at $2.3 billion, all cash.

The companies announced the agreement on October 6. The transaction is expected to close in the coming months after regulatory approvals and other customary closing conditions. Thus, while agreed, the acquisition is not yet completed.

ezCater specializes in providing food for companies, meetings, events, and corporate programs. Through the platform, food can be ordered from more than 140,000 restaurants across the U.S.

Over the past 12 months, order volume through ezCater exceeded $2.5 billion, growing approximately 15–20% year over year. The average order value is over $400. The company is also already profitable on an adjusted operating income basis.

Uber aims to integrate ezCater with Uber Eats and Uber for Business. For restaurants, this should provide access to larger corporate orders, and Uber customers will be able to use a single ecosystem for employee dining, events, and other group orders.

“Catering is a big business and an enormous potential revenue source for restaurants,” said Uber CEO Dara Khosrowshahi.

The Uber chief noted that the company expects its own customer base and logistics network to bring ezCater service to significantly more users.

For Uber, the deal continues to expand its business beyond regular food delivery. The company is actively developing Uber for Business targeting corporate clients, and the acquisition of ezCater will provide ready infrastructure and a customer base in the corporate catering market.

J.P. Morgan Securities is acting as financial advisor to Uber, and Evercore is advising ezCater. Legal advisors for the transaction are Covington & Burling, Freshfields, and Davis Polk & Wardwell.

Based on materials from: Uber