Uber agreed to acquire Boston-based ezCater for 2.3 billion dollars in cash, expanding its workplace catering business. The platform will join Uber Eats and Uber for Business. Company figures put gross bookings over the last 12 months above 2.5 billion dollars and average orders above 400 dollars. Regulatory approvals and customary conditions remain outstanding, with completion expected in the coming months.
Uber announced an agreement on October 6 to buy ezCater, a US marketplace connecting businesses with restaurants for group meals. The Boston-based business is valued at 2.3 billion dollars in the all-cash transaction. Its workplace catering services will be combined with Uber Eats and Uber for Business, bringing meeting, event and employee-meal orders into those operations.[1], [2]
According to the company figures, ezCater generated more than 2.5 billion dollars in gross bookings during the last 12 months. Gross bookings represent the value of orders rather than revenue or profit. Average orders exceed 400 dollars, and the platform provides access to more than 140,000 US restaurants. It includes tools for ordering and managing meal spending. Uber chief executive Dara Khosrowshahi presented access to larger customers and higher-value orders as a rationale for the acquisition.[1], [2]
Founded in 2007, ezCater raised its first outside funding in 2014, securing 4 million dollars after 7 years without external capital. The acquisition remains subject to regulatory approvals and customary closing conditions. The companies expect to complete it in the coming months. Uber also expects a contribution to margins, an expectation attached to the planned transaction.[1], [2]
