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(Sharecast News) - Uber announced on Tuesday that it is spending $2.3bn to buy food marketplace ezCater as it looks to expand its takeaway delivery service further into corporate and group food orders.
Boston-based ezCater allows businesses to order food from more than 140,000 restaurants across the US, covering everything from meetings and events to recurring workplace meal programmes.
Uber said the deal would combine ezCater's corporate catering expertise with the reach of Uber Eats and Uber for Business, giving restaurants access to larger orders and allowing customers to arrange food for groups through its platform.
ezCater generated more than $2.5bn of gross bookings over the past 12 months, with bookings growing in the high teens year on year, Uber said in a statement.
The business is profitable on a non-GAAP operating income basis and is expected to boost Uber's margins with the average order value more than $400.
Chief executive Dara Khosrowshahi said catering could be a "huge revenue stream for restaurants", adding that Uber's scale would allow ezCater's service to reach millions more customers.
ezCater chief executive Nihad Rahman said joining Uber would allow the company to bring its workplace catering expertise to a much larger network of customers, restaurants and couriers.
The transaction is expected to close in the coming months, subject to regulatory approvals and other customary conditions.
Uber shares were up 0.9% in pre-market trading at $70.10.
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