Uber is making a $2.3 billion move to expand its business-to-business delivery operations, agreeing to acquire ezCater, a workplace catering platform known for higher-value orders that average more than $400.
The all-cash transaction, announced Tuesday, will bring Boston-based ezCater into Uber’s broader ecosystem, combining its workplace catering operations with Uber Eats and Uber for Business.
The acquisition gives Uber access to a significant volume of scheduled commercial deliveries tied to corporate meetings, employee meal programs and events, according to the company.
ezCater generated more than $2.5 billion in gross bookings over the trailing 12 months, with year-over-year growth in the high teens. The company is profitable on a non-GAAP operating income basis and is expected to be margin accretive to Uber. Its average order value is above $400.
The platform currently enables businesses to order from more than 140,000 restaurants across the U.S. It also provides companies with tools to manage food ordering and spending, giving Uber an established B2B customer base alongside its restaurant and courier network.
For Uber (NYSE: UBER), the deal creates another channel for commercial delivery volume through infrastructure the company already operates, while further expanding its presence in the B2B market.
Restaurants could benefit from access to larger orders and additional customers, while Uber Eats couriers would gain new earning opportunities through catering deliveries.
“Catering is a big business, and can be a huge revenue stream for restaurants,” Uber CEO Dara Khosrowshahi said while announcing the transaction.
ezCater CEO Nihad Rahman said the combination of the company’s catering and B2B expertise with Uber’s broader platform would give ezCater access to a larger network of customers, merchants and couriers.
The acquisition is expected to close in the coming months, subject to regulatory approvals and other customary closing conditions.
Uber Freight strengthens implementation leadership
The ezCater acquisition comes as Uber is also strengthening its logistics operations.
Separately, Uber Freight announced Monday that Erin Mitchell has joined the Chicago-based company as senior vice president of implementation.
Mitchell will oversee customer onboarding for Uber Freight’s Transportation Management business, including the implementation of its transportation management system for customers.
Her background spans both sides of the supply chain industry. Before joining Uber Freight, Mitchell served as chief operating officer at YMX Logistics and previously held an executive position at Kraft Heinz.
That experience gives her a perspective across logistics providers and corporate supply chain operations—an important combination as transportation technology becomes increasingly integrated into broader business operations.
“Transportation touches so much of a company’s business—from warehouse costs and service levels to its ability to grow,” Mitchell said in a statement. “I’ve led supply chain operations and been responsible for delivering logistics services, so I understand both what customers expect and what it takes to deliver consistently.”
The appointment puts additional emphasis on the execution side of Uber Freight’s technology business, particularly the transition from selling transportation management solutions to successfully deploying them for customers.
Why it matters
The ezCater acquisition pushes Uber further into higher-value business deliveries and gives the company another way to use its existing delivery network. At the same time, Mitchell’s appointment highlights Uber Freight’s focus on turning transportation technology sales into effective, successful customer implementations.
