Uber enters catering market by acquiring ezCater for $2.3 billion

Uber has decided to acquire the US-based catering platform ezCater to grow its presence in the food delivery and corporate catering sectors. It was stated that the transaction is valued at $2.3 billion and will be conducted entirely in cash.

The acquisition is seen as the latest step in Uber's strategy to increase the variety of services it offers through Uber Eats. ezCater operates on a marketplace model that connects businesses in need of large-scale food orders with restaurants and suppliers that provide catering services.

Founded in 2007, the company reached a gross booking volume of over $2.5 billion in the last 12 months, according to data shared by Uber. ezCater is described as one of the leading platforms in the US, particularly for food services aimed at workplaces and corporate clients.

Uber CEO Dara Khosrowshahi stated that the catering business could be a significant revenue stream for restaurants. Khosrowshahi said that thanks to Uber's extensive reach, this experience could be brought to more customers and help restaurants capture a larger share of large-scale orders.

The company has recently been making various moves to grow its food delivery side. In addition to the $15 billion acquisition process underway for Delivery Hero, Uber's agenda also includes investment and partnership steps with drone delivery companies such as Zipline and Flytrex.

News Source: 12punto