Uber Technologies said on Tuesday that it will acquire U.S. catering platform ezCater in an all-cash deal valued at $2.3 billion, marking its latest move to strengthen delivery, the company’s fastest-growing business segment.
The acquisition comes months after Uber agreed in July to buy German company Delivery Hero in a $14.8 billion transaction aimed at creating the largest food delivery group outside China.
Founded in 2007, ezCater allows companies to order food from catering providers for corporate events, meetings, and workplace meals. The platform generated more than $2.5 billion in gross bookings over the past 12 months, according to Uber.
The deal will combine ezCater’s catering business with Uber Eats’ restaurant network and Uber for Business’ corporate customer base, the company said.
While Uber Eats has a broader global presence, DoorDash currently holds the largest share of the U.S. food delivery market, according to analysts. The ezCater acquisition is expected to help Uber narrow that gap.
Uber said ezCater’s average order values exceed $400 and that the acquisition is expected to improve margins.
The purchase adds a new business line focused on high-value group orders paid for by companies, expanding Uber’s corporate segment, which saw gross bookings grow more than 40% in the second quarter, according to Rosenblatt analyst Scott Devitt.
“Importantly, bringing workplace buyers into the ecosystem supports the membership flywheel,” Devitt said.
Uber shares have fallen 15% this year as investors assess how the company will compete as robotaxis begin to reshape the ride-hailing market.
The company’s delivery segment accounted for about 37% of total revenue in the second quarter and has been its largest growth driver in recent periods.
The acquisition remains subject to regulatory approval and is expected to close in the coming months.