Business & Finance

Uber’s Acquisition of ezCater Aims to Expand Workplace Catering Reach

By Richard Slawsky

Uber announced on Oct. 6 that it had agreed to acquire ezCater for $2.3 billion in cash. The deal is expected to close in the coming months, subject to regulatory approvals and other customary conditions. The transaction combines ezCater’s catering expertise with Uber Eats’ network and Uber for Business’ corporate relationships. ezCater serves more than 140,000 restaurants and generated over $2.5 billion in annual gross bookings, with average orders exceeding $400. Uber says ezCater is profitable on a non‑GAAP operating income basis and expects it to improve margins.

Restaurant operators are weighing how the deal will affect commissions, rewards and their relationships with customers. Gracie Prasanson, vice president of sales at Jason’s Deli, said she was surprised that Uber Eats was involved and hopes the partnership will bring more customers back to first‑party ordering. Mike Dolinger, vice president of operations at California Tortilla, noted that while the platforms have strengths, there is room to improve costs, support and usability. Brittany Mercer, director of off‑premises sales at Cowboy Chicken, expressed uncertainty about how the acquisition will affect her brand, especially after Uber raised commission rates for small brands to 28% in the second quarter.

Arya Rashtchian, co‑founder and CEO of OmniRev, which helps brands grow direct catering business, suggested that if Uber changes ezCater’s rewards structure, rewards‑driven buyers might seek alternatives, opening opportunities for restaurants’ loyalty programs. Rashtchian’s prediction remains speculative, as Uber has not announced plans to eliminate ezRewards or reduce benefits.

The larger issue for operators is how to create loyalty. Rewards can influence where a buyer places an order, but consolidated spending tools, reliable delivery and responsive support also matter. Uber’s network could expand coverage, but catering requires adequate vehicle capacity, temperature control, building access and precise arrival times. A delayed catering delivery can disrupt an entire meeting and jeopardize a recurring account.

For corporate buyers, the potential benefit is fewer systems for ordering, budgeting and resolving problems, which could encourage recurring purchases. However, it would not guarantee lower prices. Restaurants will need to weigh promotional offers against their total cost of participation, while employers assess whether the service consistently delivers complete orders on time.

Greater reach will matter only if service and restaurant economics improve alongside it. Commissions, rewards and access to customer relationships will determine how much of the growth operators retain.