Uber to Buy Catering Firm for $2.3 Billion

Uber is to pay $2.3 billion in cash to buy ezCater, a firm that handles catering and meals in workplaces, the ridehailing and food delivery giant said on Tuesday.

EzCater’s service offers businesses a way to order from restaurants across the country, including for meetings and events. The company generated more than $2.5 billion in gross bookings in the past 12 months, growing “high teens year over year.” That’s tiny for Uber, whose food delivery business reported $27.46 billion in gross bookings in the second quarter alone.

But according to Uber, the business is profitable. And ezCater’s average order values are over $400, significantly higher than what the average household would spend on an Uber Eats order.

“Catering is a big business, and can be a huge revenue stream for restaurants,” said Uber CEO Dara Khosrowshahi, in a statement.