Uber is buying catering company ezCater in an all-cash transaction valued at $2.3 billion, as it continues to grow the services available through its Uber Eats division.
ezCater describes itself as a leading U.S. platform for catering and workplace meals, acting as a marketplace for businesses that need large meals. Founded in 2007, it generated over $2.5 billion in gross bookings over the last 12 months, according to Uber. The company was bootstrapped for seven years before raising its first $4 million round in 2014.
Uber CEO Dara Khosrowshahi said catering can be a significant revenue stream for restaurants. "With Uber's reach, we can bring that experience to millions more customers and help restaurants win more of these valuable orders," he said in a statement.
The acquisition is the latest in a series of moves by Uber to expand its food delivery business. The company is also in the process of buying Delivery Hero for $15 billion, and it is investing in and partnering with drone delivery companies including Zipline and Flytrex.