Uber to Acquire ezCater for $2.3 Billion in Cash to Expand Corporate Catering Services

Stock News10-06

Uber (UBER.US) will acquire catering services company ezCater Inc. for $2.3 billion in cash, a move that will help the Uber Eats delivery platform reach more corporate clients.

Boston-based ezCater provides a catering services platform through which businesses can arrange food services for events, meetings and other gatherings.

Uber said in a statement on Tuesday that the private company has generated more than $2.5 billion in gross bookings over the past 12 months and partners with more than 140,000 restaurants across the United States. The average order value for ezCater customers exceeds $400.

The acquisition will help Uber better compete with DoorDash (DASH.US), the leading food delivery platform in the United States. DoorDash launched a catering service product for corporate employees in April this year.

Uber said the ezCater acquisition is expected to close in the coming months. As of press time, Uber shares rose nearly 1% in premarket trading.

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