The deal gives Uber Eats access to ezCater's network of more than 140,000 restaurants across the United States
By Adriano Marchese
Uber Technologies is expanding its food delivery service with its $2.3 billion acquisition of ezCater.
The deal gives Uber Eats access to ezCater's network, which is used primarily in workplaces in the U.S., and supports everything from meetings, events, and recurring enterprise catering needs. It is used in more than 140,000 restaurants across the country and generates over $2.5 billion in annual gross bookings, Uber said.
"Catering is a big business, and can be a huge revenue stream for restaurants," Uber Chief Executive Dara Khosrowshahi said. EzCater average orders come in at more than $400, according to Uber.
In its latest quarter ended June 30, Uber's revenue was driven by a 25% growth in gross bookings from its delivery business due to higher volumes and more active users.
Khosrowshahi told investors on the earnings call that the company is shifting beyond single meal deliveries into large group orders and in-store pick-ups where he said the company is seeing more room for expansion.
The ezCater acquisition comes as Uber moves to broaden its global food delivery footprint. In July, it made a $14.8 billion takeover bid for German company Delivery Hero, a deal that would merge two of the world's biggest food-delivery platforms.
Uber said the ezCater transaction is expected to close in the coming months, subject to regulatory approvals and other customary closing conditions.