Oct 6 (Reuters) – Uber said on Tuesday it would buy US catering platform ezCater in an all-cash deal for $2.3 billion, expanding its food delivery and workplace meals business.
Founded in 2007, ezCater lets companies order food from caterers for corporate events, meetings and workplace meals.
The deal would combine ezCater’s catering business with Uber Eats’ restaurant network and Uber for Business’ corporate customer base, the company said.
Uber has been expanding its delivery operations globally, agreeing in July to buy Delivery Hero in a $14.8 billion deal aimed at creating the largest food delivery group outside China.
“Catering is a big business, and can be a huge revenue stream for restaurants,” Uber CEO Dara Khosrowshahi said.
ezCater generated more than $2.5 billion in gross bookings over the last 12 months, Uber said, adding that average order values exceed $400 and the deal is expected to boost margins.
The deal is subject to regulatory approval and is expected to close in the coming months.
(Reporting by Prathik Jayaprakash in Bengaluru; Editing by Tasim Zahid)
