Delivery people have a new way to make money! Uber acquires ezCater, large-scale catering orders become new opportunities to make money

Uber is expanding its business and will acquire US catering platform ezCater for US$2.3 billion. (Reuters)

[Financial Channel/Comprehensive Report] Uber (Uber Technologies) announced on Tuesday (6th) that it has reached an agreement with the US catering platform ezCater. Uber will acquire ezCater for US$2.3 billion in cash. The transaction is expected to be completed in the next few months, but still needs regulatory approval. Uber emphasized that it expects the transaction to have a positive contribution to Uber's profit margins, and that delivery riders on Uber Eats will also gain attractive new earning opportunities.

ezCater works with more than 140,000 restaurants in the United States, and the company's software and platform enable users to place large orders for conferences and other business events. The average order amount on ezCater is over $400.

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Uber's Uber for Business currently provides some group catering delivery services to companies.

Uber said the deal will allow restaurants to grow their business through larger orders and new customers. Customers will be able to more easily and reliably find and order meals for groups, including workplace catering, events and social gatherings. Delivery riders on Uber Eats will also have attractive new earning opportunities.

Uber CEO Dara Khosrowshahi said that catering is a big business and can also become a very huge source of revenue for restaurants. After Uber's acquisition, ezCater's services will be able to be provided to "millions of more customers" and help restaurants obtain more such high-value orders.

Nihad Rahman, CEO of ezCater, said that he is very much looking forward to bringing catering and B2B professional capabilities into Uber's global ecosystem to serve its customers, merchants and delivery people.

An analysis by the US media "Business Insider" pointed out that this transaction shows that a wave of competition for turf is taking place in the US food delivery market.

DoorDash and Uber Eats expanded their partnership with Costco last month. Walmart said a month ago that it would use its large team of deliverymen to enter the restaurant delivery market, starting with about 10,000 Dunkin' stores in the United States.

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