Uber to buy Bangladeshi-American Nihad Rahman-led ezCater for $2.3 billion
Founded in 2007, ezCater allows companies to order food from caterers for corporate events, meetings and workplace meals. The platform generated more than $2.5 billion in gross bookings over the past 12 months.
Uber Technologies has agreed to acquire US-based catering and workplace meals platform ezCater, led by Bangladeshi-American Nihad Rahman, for $2.3 billion in an all-cash deal.
Boston-based ezCater is led by Rahman, who joined the company as chief financial officer in 2022 after serving as a managing director at JPMorgan Chase and holding leadership positions at General Electric. He became interim chief executive in January 2025 and was appointed CEO in May that year.
The acquisition, announced yesterday (6 October), is Uber's latest move to strengthen its delivery business, which has become its fastest-growing segment, reports Reuters.
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Founded in 2007, ezCater allows companies to order food from caterers for corporate events, meetings and workplace meals. The platform generated more than $2.5 billion in gross bookings over the past 12 months, according to Uber.
The deal comes months after Uber agreed in July to acquire German firm Delivery Hero for $14.8 billion, in a transaction aimed at creating the largest food delivery group outside China.
The deal would combine ezCater's catering business with Uber Eats' restaurant network and Uber for Business' corporate customer base, the company said.
Uber Eats has a wider global reach, but DoorDash holds the majority of the US food delivery market, according to analysts, and the ezCater deal is expected to help Uber narrow that gap.
Uber said ezCater's average order values exceed $400, and the deal is expected to boost margins.
The acquisition adds a new line of business built on high-value group orders paid for by companies, expanding Uber's business-focused segment, whose gross bookings grew more than 40% in the second quarter, Rosenblatt analyst Scott Devitt said.
"Importantly, bringing workplace buyers into the ecosystem supports the membership flywheel," Devitt said.
The ride-hailing and delivery company's shares have fallen 15% this year as investors weigh how well it can compete once robotaxis begin to reshape the ride-hailing market.
Uber's delivery segment accounted for about 37% of total revenue in the second quarter and has been its biggest growth driver in the recent past.
The deal is subject to regulatory approval and is expected to close in the coming months.
