Uber Technologies has agreed to acquire US-based corporate catering platform ezCater for $2.3 billion in an all-cash transaction, as the ride-hailing company looks to strengthen its food delivery operations and expand its presence in the corporate catering market.
Announced on October 6, the acquisition marks another major investment by Uber in its delivery business, which has emerged as one of its key growth drivers. The deal will enable the company to expand beyond individual restaurant orders and tap into demand from businesses that regularly arrange meals for employees, meetings and corporate events.
Founded in 2007, ezCater provides a platform through which companies can order food from catering businesses for office meetings, workplace meals and corporate functions. Its service allows organisations to arrange bulk food orders for employees and event attendees rather than placing separate orders for individuals. The company works with more than 140,000 restaurants across the United States, according to the acquisition announcement.
Uber said ezCater recorded gross bookings exceeding $2.5 billion over the preceding 12 months. The platform’s average order value is more than $400, making corporate catering an attractive business opportunity for Uber as it seeks to increase the value of transactions handled through its delivery network.
The acquisition will bring together ezCater’s expertise in corporate catering, Uber Eats’ restaurant network and Uber for Business’ relationships with corporate customers. The combination is expected to help Uber offer a broader range of food services to companies while giving restaurants access to larger orders and additional customers.
Unlike conventional food delivery, which largely depends on individual consumers ordering meals, corporate catering involves larger orders placed by businesses. These transactions can generate higher revenues per order and provide restaurants with opportunities to serve groups of customers through a single booking. Uber expects the acquisition to improve margins as it expands its presence in this segment.
The move also reflects Uber’s efforts to strengthen its position in the competitive US food delivery market, where DoorDash remains a leading player. Although Uber Eats operates across a wider international network, it faces strong competition in the United States. Adding ezCater’s established corporate catering operations could help Uber attract more business customers and diversify its sources of food delivery revenue.
Uber’s business-focused segment has also been gaining momentum. Gross bookings in the segment increased by more than 40% in the second quarter, according to figures cited by Rosenblatt analyst Scott Devitt. The acquisition could further strengthen this business by bringing more workplace buyers into Uber’s ecosystem and encouraging greater use of its services.
The ezCater agreement follows another significant move by Uber to expand its food delivery operations. In July, the company agreed to acquire German food delivery firm Delivery Hero in a transaction valued at $14.8 billion. That proposed deal is intended to strengthen Uber’s international delivery operations and expand its position in markets outside China. Together, the acquisitions underline the company’s growing focus on food delivery and related services.
Delivery has become increasingly important to Uber’s overall business. The segment accounted for approximately 37% of the company’s total revenue in the second quarter and has been among its strongest growth drivers. By expanding into corporate catering, Uber is seeking to build on this momentum and create additional revenue opportunities beyond its traditional ride-hailing operations.
The strategy comes at a time when investors are assessing the long-term outlook for Uber’s core transportation business. The company’s shares have declined about 15% this year amid concerns over competition and the potential impact of autonomous vehicles, including robotaxis, on the ride-hailing industry. Expanding its delivery and corporate services could help Uber diversify its business as the transportation sector evolves.
The acquisition, however, remains subject to regulatory approval. Uber expects the transaction to be completed in the coming months. Once finalised, the deal will give the company access to an established corporate catering platform and strengthen its efforts to compete in the US food delivery market.
