Uber Agrees to Buy Nihad Rahman’s ezCater for $2.3 Billion as Corporate Catering Competition Grows

A $2.3 Billion Deal for Workplace Meals

Uber Technologies has agreed to acquire Boston catering marketplace ezCater for $2.3 billion in cash, buying a business with more than 140,000 restaurant partners and more than $2.5 billion in gross bookings over the past 12 months. The October 6 announcement puts corporate meals at the center of another major expansion of Uber’s delivery business.

Led by Bangladeshi American chief executive Nihad Rahman, ezCater connects businesses with restaurants for workplace lunches, meetings and events. The company is identified as Eatsaeter in the initial account, but the acquisition reports consistently name it ezCater. At the Bangladesh Bank exchange rate cited in that account, Tk 123.07 per dollar, the purchase price equals approximately Tk 283.06 billion.

The transaction would combine ezCater’s catering expertise with the restaurant network of Uber Eats and the corporate customer base of Uber for Business. It is expected to close in the coming months, subject to regulatory approval and customary closing conditions. No exact completion date has been announced.

The financial attraction extends beyond adding another delivery category. Uber says ezCater’s average order exceeds $400, the business is profitable under an adjusted operating income measure, and the acquisition is expected to improve margins. Those figures describe a business built around feeding groups rather than delivering individual meals.

Uber chief executive Dara Khosrowshahi described the purchase as a way to connect restaurants with more customers placing valuable catering orders:

Catering is a big business, and can be a huge revenue stream for restaurants.

He also explained what Uber expects its distribution network to contribute:

With Uber’s reach, we can bring that experience to millions more customers and help restaurants win more of these valuable orders.

Rahman Leads a Business That Once Aimed for an IPO

Rahman joined ezCater as chief financial officer in 2022 after serving as a managing director at JPMorgan Chase and holding senior positions at General Electric. He became interim chief executive in January 2025 and permanent chief executive in May of that year.

His appointment followed several leadership changes. Founder and former chief executive Stefania Mallett stepped down in 2023. Ashwin Raj, a former Amazon and Lyft executive who succeeded her, left in January 2025 after approximately 18 months in the role.

Before the acquisition agreement, ezCater had been expected to pursue an initial public offering, which would have allowed investors to buy its shares on a stock exchange. The Uber transaction instead offers a sale to an established platform. Earlier disclosures put ezCater’s valuation above $1.6 billion, although the absence of an exact comparable valuation prevents a precise calculation of the acquisition premium.

Rahman, speaking as ezCater’s chief executive, welcomed access to Uber’s wider network:

We're energized to bring our catering and B2B expertise to Uber's global ecosystem of customers, merchants and couriers.

B2B means business to business. In this case, it describes a service in which an employer or other organization purchases meals for a group, rather than an individual ordering dinner.

From a Pandemic Collapse to a National Catering Network

Founded in 2007, ezCater operated for seven years without outside investment before raising its first $4 million funding round in 2014. It is based in Boston’s Financial District and employs roughly 900 people, including about 300 in Boston.

The pandemic exposed the risks of relying on office meals. Sales fell 85 percent as workplaces closed, and the company laid off 420 employees. Its subsequent recovery included a shift toward factories and hospitals, where workers still needed to be physically present.

That history helps explain the value of serving different types of workplaces. A factory meal program and an office meeting may use the same ordering platform, but their demand can respond differently to changes in attendance. EzCater now reportedly serves more than 90 percent of Fortune 500 companies, alongside its broad restaurant network.

The company’s development and the acquisition follow this sequence:

• 2007: ezCater was founded.
• 2014: It raised its first $4 million funding round after seven years without outside investment.
• 2022: Nihad Rahman joined as chief financial officer.
• 2023: Founder Stefania Mallett stepped down as chief executive.
• January and May 2025: Rahman became interim chief executive, then permanent chief executive.
• October 6, 2026: Uber announced the $2.3 billion acquisition agreement.
• Coming months: The companies expect completion, subject to approvals and other conditions.

What the Bookings and Profit Figures Mean

EzCater generated more than $2.5 billion in gross bookings during the trailing 12 months, according to figures attributed to Uber and the acquisition announcement. Reports describe annual growth as either double digits or the high teens. Those descriptions are compatible, although the latter gives a narrower indication of the pace.

Gross bookings measure the value of transactions passing through a platform. They are not the same as the platform’s revenue or profit. One account describes the $2.5 billion figure as gross sales last year; the more consistently reported description is gross bookings over the most recent 12 months.

The distinction matters when evaluating the purchase price. The $2.3 billion consideration is less than 0.92 times the reported annual bookings of more than $2.5 billion. That calculation compares the acquisition price with the value of orders handled, not with money ezCater retains after restaurant payments and other costs.

Uber says ezCater is profitable on a non-GAAP operating income basis. Non-GAAP means the calculation adjusts standard accounting results by excluding certain items. The reported figures do not specify those exclusions, so this should not be treated as confirmation of profitability under standard accounting rules.

The deal is also expected to be margin accretive, meaning Uber expects it to improve the relevant profit margin. That is an expectation, not a completed result, and no exact improvement has been disclosed.

Why a $430 Meal Order Changes the Economics

Descriptions of ezCater’s average order range from approximately $400 to more than $400. More specific 2026 company data put the average workplace catering order at $430, feeding 26 people. These figures may cover different periods or order categories and should not be treated as identical measurements.

Using the workplace figures, $430 divided by 26 people is approximately $16.54 per person. The large transaction value therefore reflects the size of the group, rather than necessarily indicating an expensive meal for each diner.

Timing creates another operational challenge. According to the same 2026 data, 30 percent of workplace catering orders arrive with less than 24 hours’ notice. Restaurants must prepare substantial quantities, arrange packaging and coordinate delivery within a short window.

Aaron Hoffman, cofounder and chief executive of catering delivery service DeliverThat, says ezCater commissions average in the high 20 percent to 30 percent range. His estimate is not a published universal fee schedule. At an illustrative 30 percent commission, a $430 order would carry a $129 platform charge, leaving $301 before the restaurant’s ingredients, labor and other costs.

That arithmetic explains why a bigger order is not automatically a better order. Uber’s reach could increase sales volume, while the terms attached to those sales will determine how much restaurants keep. Denny’s, Del Taco, Sweetgreen and Five Guys have added or expanded catering during the year, showing that large chains are pursuing this channel too.

Integration Details Are Still Missing

The strategic plan is to connect ezCater with Uber Eats and Uber for Business, but the companies have not explained whether ezCater will remain a separate operation or become part of the Uber Eats interface. They also have not detailed changes to restaurant software connections, customer accounts, delivery assignments or commissions.

Jenn Saunders-Haynes, a catering consultant and former director of global catering at Subway, described the concerns she heard from restaurant operators after the announcement:

I think people are curious. I think there are also some feelings of concern and confusion,

She identified practical issues involving ordering systems, connections to restaurant point of sale software and whether the customer experience would resemble Uber or ezCater. Point of sale software records transactions and often connects incoming orders with kitchen operations.

Uber says the combination should make group and event ordering simpler and more reliable, while creating additional earning opportunities for couriers. Saunders-Haynes also sees potential to extend catering beyond companies to consumers hosting parties and other gatherings. Neither prospect settles how the service will operate at launch.

Boston employment is another unresolved issue. Peter Cohan, a professor of business strategy and entrepreneurship at Babson College, discussed possible sales efficiencies, international expansion, relocation and reductions in finance or human resources roles. Those are potential outcomes he raised, not announced company decisions. No staffing or headquarters plan has been disclosed.

Restaurants Weigh More Customers Against Greater Platform Power

For restaurants, the acquisition offers a possible route to more customers while concentrating another important sales channel within a major delivery company. The distinction is especially relevant for independent operators that regard catering as a source of worthwhile profit.

Erika Polmar, executive director of the Independent Restaurant Coalition, warned that the deal could strengthen the influence large platforms have over customer access:

Uber's acquisition of ezCater is another step toward a food delivery market where a handful of giant tech platforms are deciding how independent restaurants reach their own customers,

Jen Feigel, chief executive of Boston food business incubator Commonwealth Kitchen, also objected to consolidation, arguing that corporate financial priorities do not necessarily match the needs of local food businesses.

Hoffman sees opportunities in combining workplace purchasing with Uber’s wider restaurant marketplace. A person ordering lunch for an office may also use a delivery app for personal meals, creating several potential occasions for a restaurant to reach the same customer. He nevertheless acknowledges the dependence restaurants can develop on marketplaces.

Fred LeFranc, cofounder and managing partner of restaurant consultancy Results Thru Strategy, says consolidation could simplify operations for restaurants currently managing separate systems. His assessment is conditional: the result can be helpful or harmful depending on the restaurant’s circumstances. There is no announced commission increase, and concerns about future pricing should not be confused with a decision already made.

Uber and Its Rivals Expand Beyond Individual Deliveries

Uber launched Uber Eats in 2014 and has offered employee meal program management through Uber for Business since 2018. DoorDash for Business followed in 2020. Buying ezCater would deepen an existing corporate food strategy rather than create one from nothing.

Competition increasingly involves the systems employers and restaurants use to manage orders. DoorDash introduced Meal Manager in April and later announced a corporate ordering connector in limited beta that can connect with compatible internal AI tools, including company Slack bots. EzCater launched its own Slack integration in February.

Grubhub expanded its partnership with restaurant ordering technology company Olo in February through an Olo Catering Integration. The service allows participating restaurants to process catering orders through the same central channel as regular orders. DoorDash has also expanded into reservations and marketing through SevenRooms and its DashOS product, and announced a $300 million agreement for Grubhub’s college campus business in September.

The acquisitions sit within a broader consolidation trend: Uber and DoorDash have acquired at least 17 delivery or restaurant technology businesses since 2018. Uber’s history includes buying Boston alcohol delivery company Drizly for $1 billion in 2021 and shutting the brand three years later. That precedent does not establish ezCater’s future, but it illustrates why keeping a brand separate cannot be assumed.

Restaurant demand has also moved beyond dining rooms. A June 2025 National Restaurant Association study put the share of orders consumed away from full service restaurants at 30 percent, compared with 19 percent in 2019. That is an increase of 11 percentage points. Thirty percent of such restaurants had recently changed their layouts to accommodate takeout.

Reported 2026 figures from ShiftTracker put DoorDash’s US delivery market share at 67 percent and Uber Eats’ at 25 percent. Those delivery figures do not measure catering share, but they help explain Uber’s interest in building a stronger adjacent business.

A Larger Acquisition Plan, With Forecasts Attached

Delivery already represents a substantial part of Uber. One recent earnings account puts total revenue at $14.2 billion, up 12 percent annually, with delivery contributing approximately one third. A separate second quarter figure places delivery’s share at about 37 percent. The figures refer to differently described reporting periods and should not be merged into one exact measure.

Rosenblatt analyst Scott Devitt said gross bookings in Uber’s business focused segment grew more than 40 percent in the second quarter. Uber has also described strong second quarter growth in large orders and pickup, supporting its push beyond individual meal delivery.

The ezCater agreement follows Uber’s July agreement to acquire Germany’s Delivery Hero. Reports value that transaction at $14.8 billion or a rounded $15 billion and say it could roughly double Uber’s reach to about 100 markets. Uber is also investing in or partnering with drone delivery companies Zipline and Flytrex.

BTIG analyst Jake Fuller estimates that Delivery Hero and ezCater together could add more than $66 billion in bookings. His combined 2027 forecasts are $341 billion in bookings, $87 billion in revenue and $16.6 billion in EBITDA, with an approximately 19 percent EBITDA margin. EBITDA measures earnings before interest, taxes, depreciation and amortization; it is not net profit. These are analyst projections, not realized results or company guidance.

Fuller estimates $10.6 billion to purchase the remaining Delivery Hero shares and $2.3 billion for ezCater, producing combined additional uses of $12.9 billion. That remaining share purchase estimate is different from the reported value of the entire Delivery Hero transaction. He projects $3.6 billion in cash and $21 billion in debt after the transactions, with earnings increasing by about 5 percent before possible benefits from selling overlapping operations.

Reports differ on Delivery Hero’s status. One describes the buyout as completed, while other accounts describe an agreement awaiting completion in the second half of 2027. The latter is also the timetable attached to Fuller’s estimates. EzCater has its own shorter expected timetable, but regulatory approval, the final operating structure, restaurant terms and employment decisions are still unresolved.

Key Points

• Uber agreed to acquire ezCater for $2.3 billion in cash, equivalent to approximately Tk 283.06 billion at the cited exchange rate.
• Nihad Rahman became permanent chief executive in May 2025 after joining as chief financial officer in 2022.
• EzCater works with more than 140,000 US restaurants and handled more than $2.5 billion in gross bookings over the past 12 months.
• Its 2026 workplace data put the average order at $430 for 26 people, with 30 percent ordered less than 24 hours in advance.
• Uber expects the acquisition to improve margins, but integration plans, restaurant terms and staffing decisions have not been disclosed.
• Completion is expected in the coming months, subject to regulatory approval and other closing conditions.