Uber Technologies is expanding its food delivery service with its $2.3 billion acquisition of ez Cater. The deal gives Uber Eats access to ez Cater's network, which is used primarily in workplaces in the U.S., and supports everything from meetings, events, and recurring enterprise catering needs. It is used in more than 140,000 restaurants across the country and generates over $2.5 billion in annual gross bookings.
Catering is a big business and can be a huge revenue stream for restaurants, said Uber Chief Executive Dara Khosrowshahi. In its latest quarter ended June 30, Uber's revenue was driven by a 25% growth in gross bookings from its delivery business due to higher volumes and more active users. Khosrowshahi told investors on the earnings call that the company is shifting beyond single meal deliveries into large group orders and in-store pick-ups where she said the company is seeing more room for expansion.
The ez Cater acquisition comes as Uber moves to broaden its global food delivery footprint. In July, it made a $14.8 billion takeover bid for German company Delivery Hero, a deal that would merge two of the world's biggest food-delivery platforms. The ez Cater transaction is expected to close in the coming months, subject to regulatory approvals and other customary closing conditions.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing