SAN FRANCISCO – Uber Technologies Inc. is buying catering firm ezCater Inc., a Boston-based company that offers a platform where businesses can arrange for food services at events, meetings and other gatherings.
The $2.3 billion acquisition will bolster Uber’s food delivery business, which contributes about half of the ride-hailing company’s bookings. Uber Eats competitor DoorDash also added a workplace catering business this year.
“Catering is a big business, and can be a huge revenue stream for restaurants,” said Dara Khosrowshahi, CEO of Uber. “Nihad [Rahman, CEO of ezCater] and his incredible team have built an amazing platform. With Uber’s reach, we can bring that experience to millions more customers and help restaurants win more of these valuable orders.”
A press release announcing the deal said ezCater’s average orders are valued at more than $400. The company generated $2.5 billion in gross bookings over the trailing twelve months. With more than 140,000 restaurant customers worldwide, ezCater is growing annually at a “high teens” rate and is profitable on a non-GAAP basis, according to the release.
