Uber Pays $2.3 Billion For Bootstrapped Catering Platform ezCater
The all-cash deal hands a big exit to a company that ran for seven years without outside funding before raising $4 million in 2014.
Uber has agreed to acquire ezCater, a US marketplace for catering and workplace meals, in an all-cash deal valued at $2.3 billion, TechCrunch reported.
ezCater connects businesses that need large food orders with restaurants. Uber said the platform generated more than $2.5 billion in gross bookings over the past 12 months. The company was founded in 2007 and operated without outside capital for seven years before raising a $4 million round in 2014, making the sale a sizable exit for an originally bootstrapped business.
Uber CEO Dara Khosrowshahi framed the purchase as a way to steer bigger orders to restaurants on the company's platform. "Catering is a big business, and can be a huge revenue stream for restaurants," he said in a statement.
The deal adds to a string of expansion moves in Uber's food delivery unit. The company is also working to complete a $15 billion purchase of Delivery Hero and has invested in and partnered with drone delivery firms including Zipline and Flytrex, according to TechCrunch.
This story was first reported by TechCrunch.
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