Uber is spending $2.3B to get into catering
Uber has announced a $2.3 billion all-cash acquisition of the catering marketplace ezCater to expand its Uber Eats division into the business-to-business catering sector. This move is part of a broader strategy to diversify Uber's food delivery services and increase revenue streams.
Why it matters
The acquisition signals Uber's aggressive expansion into the corporate catering market, potentially disrupting traditional food service logistics.
Uber is buying a catering company called ezCater, as it continues to grow the types of services available through its Uber Eats division. It’s an all-cash transaction valued at $2.3 billion.
Billed as a “leading U.S. platform for catering and workplace meals,” ezCater is a marketplace for businesses that need large meals, like an Expedia for catering. The company was founded in 2007 and has become a business that generated over $2.5 billion in gross bookings over the last 12 months, according to Uber. It’s a huge exit for a company that was bootstrapped for seven years before raising its first $4 million round in 2014.
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