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Uber to Expand Food Delivery Reach Via ezCater Buy: A Growth Catalyst?
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Key Takeaways
Uber will acquire ezCater for $2.3B to expand into workplace catering and large group orders.
ezCater logged over $2.5B in trailing-12-month gross bookings, growing at a high-teens rate.
Uber expects ezCater to be margin accretive and deepen its competition with DoorDash.
Uber Technologies (UBER - Free Report) has agreed to acquire ezCater, a major U.S. catering and workplace-meals platform, in an all-cash transaction valued at $2.3 billion. The acquisition is aimed at expanding Uber Eats into the large-order catering market while strengthening Uber for Business. The transaction is expected to close in the coming months, subject to regulatory approvals and customary closing conditions.
Uber for Business makes it easier for companies of any size to manage rides and meal deliveries. Since 2014, Uber for Business has brought the best of the company’s technology to organizations across industries and is currently trusted by more than 200,000 companies across the globe. ezCater enables businesses to manage workplace food requirements and place orders from more than 140,000 restaurants nationwide. Its platform supports meetings, events and recurring enterprise catering, alongside tools for managing orders and food spending and round-the-clock customer support.
The combination will bring together ezCater’s catering and business-to-business expertise, Uber Eats’ broad consumer and restaurant network, and Uber for Business’s corporate relationships. The expanded platform is expected to provide restaurants with access to more high-value orders and new customers, while making it easier for businesses and consumers to arrange meals for workplaces, meetings, events and other group occasions.
The transaction may also create additional earning opportunities for Uber Eats couriers by increasing the volume of larger catering deliveries. Meanwhile, participating restaurants could benefit from higher-value transactions, given that ezCater’s average order value exceeds $400. ezCater generated more than $2.5 billion in gross bookings during the trailing 12 months, with bookings growing at a high-teens percentage rate year over year. Uber expects the business to be margin accretive.
How the Deal Could Strengthen Uber Against DoorDash
The acquisition could meaningfully strengthen Uber’s competitive position against DoorDash (DASH - Free Report) in the U.S. food-delivery market by giving it a stronger foothold in workplace catering and large group orders, a segment the latter is also actively targeting. DoorDash for Business launched expanded workplace catering offerings in April 2026, including tray-style catering and team-meal solutions, after large team orders grew 30% faster than regular orders.
By adding ezCater’s established nationwide restaurant network and corporate-catering expertise, Uber can accelerate its presence in this higher-value category rather than building those capabilities organically. The deal also broadens Uber Eats beyond individual meal delivery, potentially improving order frequency, average transaction values and engagement with corporate customers. In turn, closer integration with Uber for Business could support cross-selling and help Uber capture a larger share of workplace food spending, intensifying its competition with DoorDash across both consumer and business delivery.
DoorDash also made headlines earlier this year when it expanded the partnership into Canada with Uber’s rival Lyft (LYFT - Free Report) . The expansion allows DashPass members to receive discounts on Lyft rides. Lyft, which now operates in Canada’s 10 largest cities, aims to strengthen its market presence via this expanded deal. DoorDash has expanded DashPass beyond delivery in Canada through this Lyft partnership.
UBER’s Share Price Performance, Valuation and Estimates
UBER’s shares have declined in single digits (%-wise) over the past three months. The stock has underperformed the Zacks Internet-Services industry over the same time frame.
3- Month Price Comparison
Image Source: Zacks Investment Research
From a valuation standpoint, UBER trades at a 12-month forward price-to-sales of 2.18X. UBER is inexpensive compared with its industry.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for Uber’s earnings has been revised over the past 90 days.
View the Zacks #1 Rank List
Image: Bigstock
Uber to Expand Food Delivery Reach Via ezCater Buy: A Growth Catalyst?
Key Takeaways
Uber Technologies (UBER - Free Report) has agreed to acquire ezCater, a major U.S. catering and workplace-meals platform, in an all-cash transaction valued at $2.3 billion. The acquisition is aimed at expanding Uber Eats into the large-order catering market while strengthening Uber for Business. The transaction is expected to close in the coming months, subject to regulatory approvals and customary closing conditions.
Uber for Business makes it easier for companies of any size to manage rides and meal deliveries. Since 2014, Uber for Business has brought the best of the company’s technology to organizations across industries and is currently trusted by more than 200,000 companies across the globe. ezCater enables businesses to manage workplace food requirements and place orders from more than 140,000 restaurants nationwide. Its platform supports meetings, events and recurring enterprise catering, alongside tools for managing orders and food spending and round-the-clock customer support.
The combination will bring together ezCater’s catering and business-to-business expertise, Uber Eats’ broad consumer and restaurant network, and Uber for Business’s corporate relationships. The expanded platform is expected to provide restaurants with access to more high-value orders and new customers, while making it easier for businesses and consumers to arrange meals for workplaces, meetings, events and other group occasions.
The transaction may also create additional earning opportunities for Uber Eats couriers by increasing the volume of larger catering deliveries. Meanwhile, participating restaurants could benefit from higher-value transactions, given that ezCater’s average order value exceeds $400. ezCater generated more than $2.5 billion in gross bookings during the trailing 12 months, with bookings growing at a high-teens percentage rate year over year. Uber expects the business to be margin accretive.
How the Deal Could Strengthen Uber Against DoorDash
The acquisition could meaningfully strengthen Uber’s competitive position against DoorDash (DASH - Free Report) in the U.S. food-delivery market by giving it a stronger foothold in workplace catering and large group orders, a segment the latter is also actively targeting. DoorDash for Business launched expanded workplace catering offerings in April 2026, including tray-style catering and team-meal solutions, after large team orders grew 30% faster than regular orders.
By adding ezCater’s established nationwide restaurant network and corporate-catering expertise, Uber can accelerate its presence in this higher-value category rather than building those capabilities organically. The deal also broadens Uber Eats beyond individual meal delivery, potentially improving order frequency, average transaction values and engagement with corporate customers. In turn, closer integration with Uber for Business could support cross-selling and help Uber capture a larger share of workplace food spending, intensifying its competition with DoorDash across both consumer and business delivery.
DoorDash also made headlines earlier this year when it expanded the partnership into Canada with Uber’s rival Lyft (LYFT - Free Report) . The expansion allows DashPass members to receive discounts on Lyft rides. Lyft, which now operates in Canada’s 10 largest cities, aims to strengthen its market presence via this expanded deal. DoorDash has expanded DashPass beyond delivery in Canada through this Lyft partnership.
UBER’s Share Price Performance, Valuation and Estimates
UBER’s shares have declined in single digits (%-wise) over the past three months. The stock has underperformed the Zacks Internet-Services industry over the same time frame.
3- Month Price Comparison
From a valuation standpoint, UBER trades at a 12-month forward price-to-sales of 2.18X. UBER is inexpensive compared with its industry.
See how the Zacks Consensus Estimate for Uber’s earnings has been revised over the past 90 days.
Uber’s Zacks Rank
Uber currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.