Business & Markets
Uber agrees to buy ezCater for $2.3 billion
The purchase would add group and workplace meal orders to Uber Eats. Uber says ezCater generated $2.5 billion in gross bookings over the past year, a company-reported figure rather than revenue.
Executive summary
- The deal: Uber agreed to acquire ezCater in an all-cash transaction valued at $2.3 billion. The agreement has not closed and remains subject to regulatory approvals and other customary conditions.[1][2]
- A workplace-meal network: ezCater lets organizations order catering and workplace meals from more than 140,000 restaurants, according to Uber. The platform would add business and group orders to Uber Eats and Uber for Business.[1][3]
- Company-reported bookings: Uber says ezCater generated more than $2.5 billion in gross bookings over the trailing 12 months, with growth in the high teens. Uber describes its Gross Bookings measure separately from revenue in its earnings materials; the acquisition release did not give ezCater revenue.[1][4][3]
Uber agreed to acquire ezCater in an all-cash transaction valued at $2.3 billion, the companies announced Tuesday. The deal would bring ezCater’s workplace catering platform into Uber’s food-delivery business, extending Uber Eats’ reach from individual meals to orders for groups and organizations.[1][2][3]
ezCater connects businesses with more than 140,000 restaurants for meetings, events and recurring employee meal programs, according to Uber. The platform also offers tools for organizations to manage food ordering and spending. Reuters reported that Uber intends to pair the business with Uber Eats’ restaurant network and Uber for Business’ corporate customer relationships.[1][2]
Uber said ezCater recorded more than $2.5 billion in gross bookings over the trailing 12 months and grew at a high-teens rate year over year. The release did not give a separate ezCater revenue figure. In its earnings materials, Uber defines its own Gross Bookings metric as transaction value and distinguishes it from revenue, describing it as a measure of platform scale. Uber also said ezCater was profitable on a non-GAAP operating-income basis and had average order values above $400.[1][4][3]
The acquisition is expected to close in the coming months, Uber said, subject to regulatory approvals and customary closing conditions. The announcement did not give a specific closing date. Until those conditions are met, the purchase remains an agreement rather than a completed acquisition.[1][2]