Uber Technologies is making a $2.3 billion bet on business-to-business food delivery with its acquisition of ezCater, a workplace catering platform whose orders average more than $400.
Uber announced Tuesday that it has agreed to acquire Boston-based ezCater in an all-cash transaction that will combine the company’s workplace catering business with Uber Eats and Uber for Business.
The deal gives Uber access to a large pool of higher-value, scheduled deliveries generated by corporate meetings, employee meal programs and events, according to a news release.
EzCater generated more than $2.5 billion in gross bookings during the trailing 12 months, growing in the high teens year over year. The company is profitable on a non-GAAP operating income basis and is expected to be margin accretive to Uber. Its average order value exceeds $400.
The platform allows businesses to order from more than 140,000 restaurants nationwide and provides tools for companies to manage ordering and food spending.
For Uber (NYSE: UBER), the acquisition provides another way to put commercial delivery volume through its existing network while expanding its B2B business.
The company said restaurants could gain access to larger orders and new customers, while Uber Eats couriers would have additional opportunities to earn from catering deliveries.
“Catering is a big business, and can be a huge revenue stream for restaurants,” Uber CEO Dara Khosrowshahi said in announcing the transaction.
EzCater CEO Nihad Rahman said combining the company’s catering and B2B expertise with Uber would provide access to Uber’s broader network of customers, merchants and couriers.
The acquisition is expected to close in the coming months, subject to regulatory approvals and customary closing conditions.
Uber Freight adds implementation executive
Separately, Uber Freight announced Monday that Erin Mitchell has joined the Chicago-based company as senior vice president of implementation.
Mitchell will lead customer onboarding for Uber Freight’s Transportation Management business, including helping customers implement its transportation management system.
Mitchell previously served as chief operating officer at YMX Logistics and held an executive position at Kraft Heinz, giving her experience on both the logistics provider and corporate supply chain sides of the industry.
“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.
Why it matters: The ezCater deal expands Uber’s reach into higher-value business deliveries while Mitchell’s appointment underscores Uber Freight’s focus on converting transportation technology sales into successful customer deployments.
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