Uber Technologies has agreed to acquire ezCater, a US platform for catering and workplace meals, in an all-cash transaction worth $2.3bn.
ezCater helps businesses arrange workplace food by connecting them with more than 140,000 restaurants across the US.
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The platform covers meetings, events, and recurring enterprise catering requirements.
It also provides tools for managing orders and food expenditure, alongside 24/7 customer support.
The deal will combine ezCater’s catering and business-to-business (B2B) capabilities with Uber Eats’ global consumer and restaurant network.
It will also draw on Uber for Business’s relationships with organisations of various sizes.
Restaurants are also expected to gain access to larger orders and additional customers.
ezCater CEO Nihad Rahman said: “We’re thrilled to be joining forces with Uber. Our team is proud of what we’ve built – the leading platform for workplace catering, and a major growth channel for our restaurant partners.
“We’re energised to bring our catering and B2B expertise to Uber’s global ecosystem of customers, merchants, and couriers.”
ezCater recorded more than $2.5bn in gross bookings during the past 12 months. The company is profitable on a Non-GAAP Operating Income basis and is expected to be margin accretive. Its average order value exceeds $400.
Uber CEO Dara Khosrowshahi said: “Catering is a big business, and can be a huge revenue stream for restaurants
“Nihad and his incredible team have built an amazing platform. With Uber’s reach, we can bring that experience to millions more customers and help restaurants win more of these valuable orders.”
The deal is expected to complete in the coming months, subject to regulatory approval and other customary closing conditions.
Earlier this year, Uber Technologies agreed to acquire Delivery Hero to create the largest food-delivery group outside China.
