Uber to acquire ezCater for $2.3 billion

Uber is buying ezCater, a marketplace for catering and workplace meals, in an all-cash transaction valued at $2.3 billion, according to TechCrunch. The deal would expand the services offered through Uber Eats.

Founded in 2007, ezCater connects businesses seeking large meals with restaurants. Uber says the company generated more than $2.5 billion in gross bookings over the past 12 months.

ezCater operated for seven years before raising its first funding round, $4 million, in 2014. Uber CEO Dara Khosrowshahi said the acquisition could help restaurants reach larger customers and win more catering orders. He described catering as a potential major revenue stream for restaurants.

The purchase is part of Uber’s broader effort to expand its food delivery business. The company is also in the process of buying Delivery Hero for $15 billion and is investing in and partnering with drone delivery companies Zipline and Flytrex.