Uber to buy ezCater for $2.3 billion to expand catering — TechCrunch
In the United States, Uber will buy the corporate catering platform ezCater for $2.3 billion. The deal will be paid for entirely in cash; the acquisition is expected to expand the range of services offered by the Uber Eats division, TechCrunch reports.
A platform for large orders
ezCater positions itself as one of the leading U.S. platforms for catering and employee meals. It is a marketplace for companies that need to order large volumes of food. According to Uber, ezCater generated more than $2.5 billion in gross bookings over the past 12 months.
ezCater was founded in 2007. During its first seven years, it developed without external investment, and in 2014 it raised its first funding round of $4 million.
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Uber Eats expansion
Uber CEO Dara Khosrowshahi said the acquisition is intended to help restaurants find new and larger customers. According to him, catering is a large business and can become a significant source of revenue for restaurants.
The purchase of ezCater was another step by Uber in developing its food delivery business. The company is also in the process of acquiring Delivery Hero for $15 billion and is investing in and partnering with drone delivery companies, including Zipline and Flytrex.
