Uber Buys EzCater for $2.3B to Add Corporate Catering to Uber Eats
UBER is trading near its 52-week low of $65.41 (6.8% above the low).
Summary
Uber Technologies agreed to acquire ezCater for $2.3 billion in an all-cash deal, expanding Uber Eats into corporate catering. The acquisition adds a U.S. catering platform with over $2.5 billion in annual gross bookings and a network of 140,000 restaurants, and Uber will combine ezCater with Uber for Business. The deal expands Uber Eats beyond single meal deliveries into workplace and enterprise catering, where average orders exceed $400, and includes group ordering. Uber expects the acquisition to be margin accretive, and ezCater is profitable on a non-GAAP operating income basis with year-over-year growth in the high teens. This follows Uber's $14.8 billion bid for Delivery Hero in July, signaling an aggressive push to broaden its food delivery footprint. The transaction is expected to close in the coming months, subject to regulatory approvals.
Updated with a Businessworld report · What changed
Updates
· Businessworld — Uber Technologies agreed to acquire ezCater for $2.3 billion in an all-cash deal, expanding Uber Eats into corporate catering.
· Wiseek News — Uber reports earnings Nov 4; analysts expect ~$0.95 EPS on ~$14.71B revenue.
· Benzinga — Uber expects the acquisition to be margin accretive and ezCater is profitable on a non-GAAP operating income basis.
- Financial Impact — Acquisition of ezCater is for $2.3 billion in cash. ezCater had year-over-year growth in the high teens.
- Integration — Uber Eats expansion includes group ordering. ezCater operates a U.S. catering platform. Uber will combine ezCater with Uber for Business.
All 5 details
- Acquisition of ezCater is for $2.3 billion in cash.
- Uber Eats expansion includes group ordering.
- ezCater operates a U.S. catering platform.
- ezCater had year-over-year growth in the high teens.
- Uber will combine ezCater with Uber for Business.
At the time of this announcement, UBER was trading at $69.89 on NYSE in the Technology sector, with a market capitalization of approximately $141.9B. The 52-week trading range was $65.41 to $101.30. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.