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Uber Buys ezCater for $2.3B to Expand Catering Services

Confirmed

Technology Desk

In Short: Uber is acquiring ezCater, a catering company founded in 2007, for $2.3 billion to expand its food delivery services through Uber Eats.

According to TechCrunch, ezCater generated over $2.5 billion in gross bookings over the last 12 months.

Dara Khosrowshahi, Uber’s CEO, said the acquisition will help restaurants find new, larger customers.

Uber’s move comes as the company continues to diversify its offerings beyond ride-hailing.

InDrive, Uber’s competitor, is also expanding its services, focusing on emerging markets and pushing 'Ride Media' to capture passengers' attention.

However, Uber faces legal challenges, including a $40 million judgment against the company for the death of a passenger in 2023.

Uber argued that California law and Proposition 22 protected it from liability, but the arbitrator ruled otherwise.

The family's attorneys said Uber initially proposed a settlement that would have restricted the parents from publicly discussing the case.

Uber expressed condolences to the Normandin-Parker family and said it respects the arbitration process but disagrees with the decision.

The case highlights ongoing concerns about Uber's liability and safety measures for passengers.

What this adds

The acquisition of ezCater is part of Uber's strategy to diversify its revenue streams.

The legal battle over the death of Emily Normandin-Parker underscores the ongoing scrutiny of Uber's liability and safety practices.

What's confirmed

What's still developing

Sources