On Tuesday, Uber announced it is buying American catering platform ezCater for $2.3 billion, and not simply this amount, but in cash! RSF has more.
To expand its food delivery and workplace meals business, Uber will purchase ezCater for that amount in cash.
Under this deal and purchase, ezCater’s catering business with the restaurant network of Uber Eats and Uber for Business’ corporate customer base would merge.
“Catering is a big business, and can be a huge revenue stream for restaurants,” the chief executive officer of Uber, Dara Khosrowshahi, stated.
The world’s number one ridesharing company has been expanding its delivery operations globally, agreeing in July to purchase Delivery Hero in a $14.8 billion deal aimed at creating what it would be the biggest food delivery group beyond China.
ezCater was able to generate more than $2.5 billion in gross bookings over the last 12 months, Uber relayed, adding that average order values exceed $400 and the deal is expected to boost margins. Whoa, that’s huge!
Headquartered in Boston, ezCater connects businesses together with restaurants and caterers through an online marketplace, so it’s like running a catering business, but out of tradition.
It’s a promising partnership. But this deal will be subject to regulatory approval and will close in the coming months.
“Great food for workplaces, anywhere, anytime,” stated ezCater. It offers an organization-wide meal program, and a way to see and control food spend, in one place. Among its clientele are Google, Verizon, Georgetown University, adidas, and Procter & Gamble, among various others.
Breakfast, sandwiches, Asian, Mexican, gluten-free, and the like are among those in their catalog.
This partnership would surely benefit Denisse, a regular resource here on RSF, who you know is the human resources recruiter for Hinduja Global Solutions, operating from Great Britain.
She has decided to separate houses with her parents, since it’s more convenient for her, rather than commuting from her original home to work, taking hours due to road traffic. Her situation is that, since she’s now living independently, she would need to occasionally buy food and go out of their building during lunch breaks and snack breaks. Not convenient, right? With this type of setup, she can simply ask her food to be delivered not merely for her, but for her co-workers as well.
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