Uber is buying ezCater, a U.S. platform for corporate catering and workplace meals, in an all-cash transaction valued at $2.3 billion. The deal is the latest step in Uber's push to grow its Uber Eats division beyond individual food delivery and into larger group orders.
ezCater, founded in 2007, operates as a marketplace that connects businesses needing large meals with restaurants. Uber says the company has generated more than $2.5 billion in gross bookings over the last 12 months. ezCater bootstrapped for seven years before raising its first $4 million round in 2014.
Uber CEO Dara Khosrowshahi said catering is a big business and can be a huge revenue stream for restaurants, and that Uber's reach can bring that experience to more customers. The acquisition follows Uber's planned $15 billion purchase of Delivery Hero and its investments in drone delivery companies such as Zipline and Flytrex.