Uber is spending $2.3B to get into catering

Uber is buying a catering company called ezCater, as it continues to grow the types of services available through its Uber Eats division. It’s an all-cash transaction valued at $2.3 billion.

Billed as a “leading U.S. platform for catering and workplace meals,” ezCater is a marketplace for businesses that need large meals, like an Expedia for catering. The company was founded in 2007 and has become a business that generated over $2.5 billion in gross bookings over the last 12 months, according to Uber. It’s a huge exit for a company that was bootstrapped for seven years before raising its first $4 million round in 2014.

Dara Khosrowshahi, Uber’s CEO, billed the acquisition as a way for restaurants to find new, larger customers. “Catering is a big business, and can be a huge revenue stream for restaurants,” he said in a statement. “With Uber’s reach, we can bring that experience to millions more customers and help restaurants win more of these valuable orders.”