Uber is expanding into the group dining business.

The delivery service company stated on Tuesday that it will acquire ezCater for $2.3 billion in cash. Uber expects that the transaction will be completed “in the coming months,” provided that government approval is obtained.

The software and platform of ezCater allow users to place large orders for meetings and other business activities. The company collaborates with approximately 140,000 restaurants in the United States.

Uber for Business The business departments are currently providing some dining options for enterprises, such as group meal bookings.

Uber CEO Dara Khosrowshahi stated: "Group dining is a big business and can also become a significant source of revenue for restaurants." He also mentioned that this acquisition will enable ezCater's services to reach "millions more customers and help restaurants win more high-value orders of this kind."

Competitor DoorDash stated in April that they will launch their own group meal delivery service for office premises.

Uber also indicates that the announcement on Tuesday means that "couriers on Uber Eats will have more attractive new opportunities to make money."

Some freelance workers told Business Insider that they earn more by delivering large orders, including delivering food for events or transporting products such as potting soil from home improvement stores.

Such orders usually require special equipment for delivery, such as insulated bags that can hold multiple pizzas, or larger vehicles. The compensation for many of these orders is also higher than that for orders targeting individual consumers.

This transaction also indicates that there is competition for market share in the delivery industry.

DoorDash and Uber Eats both expanded their cooperation with Costco last month. Walmart stated a month ago that it would utilize its large team of delivery staff to participate in restaurant deliveries, starting with approximately 10,000 Dunkin stores in the United States.

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