Uber Technologies has agreed to acquire US workplace catering platform ezCater for USD 2.3 billion in an all-cash transaction. The ride-hailing and food delivery company plans to expand Uber Eats into group catering and workplace meals, according to a media report.
Uber said the acquisition will bring together ezCater’s catering and business-to-business expertise with Uber Eats’ consumer and restaurant network, as well as Uber for Business’ relationships with organisations, according to media reports.
ezCater allows businesses to order food from more than 140,000 restaurants across the US while managing workplace meals, meetings, events, and recurring catering requirements. The platform recorded more than USD 2.5 billion in gross bookings over the trailing 12 months, with year-on-year growth at a high-teens rate.
Meanwhile, the acquisition supports Uber’s strategy to expand its food delivery operations beyond individual meal orders. By combining ezCater’s workplace catering platform with Uber Eats’ consumer and restaurant network, Uber expects to increase access to group food orders and create more opportunities for restaurant partners.
According to media reports, the transaction is expected to close in the coming months, subject to regulatory approvals and other customary closing conditions.
J.P. Morgan Securities is serving as financial adviser to Uber, while Evercore is advising ezCater. Covington & Burling and Freshfields US are providing legal counsel to Uber, while Davis Polk & Wardwell is advising ezCater.
