Uber is expanding into the catering business.
The delivery service plans to acquire ezCater in a cash deal valued at $2.3 billion, the companies said on Tuesday. Uber expects the deal to close “in the coming months,” depending on government approvals, it said.
ezCater’s software and platform allow users to place large orders for meetings and other business events. The company works with about 140,000 restaurants in the US.
The company’s Uber for Business arm already offers some food options for corporations, such as group ordering.
“Catering is a big business, and can be a huge revenue stream for restaurants,” Uber CEO Dara Khosrowshahi said. Uber’s acquisition will make ezCater’s services available “to millions more customers and help restaurants win more of these valuable orders,” he said.
Rival DoorDash said in April that it would launch its own catering delivery service aimed at workplaces.
Tuesday’s announcement also means that “couriers on Uber Eats will have attractive new opportunities to earn,” Uber said.
Some gig workers have told Business Insider that they make more money by delivering large orders, including food for events or bags of potting soil from a home improvement store.
Such orders typically require special equipment to deliver — insulated bags to fit several pizzas or a bigger vehicle. Many also pay more than the orders for individual consumers.
The deal is also a sign of the land grab happening in the delivery space.
DoorDash and Uber Eats expanded their partnerships with Costco last month. Walmart said a month ago that it would use its legion of delivery workers to compete in restaurant delivery, beginning with about 10,000 Dunkin’ locations across the US.
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