Uber’s $2.3 billion ezCater deal has drawn retail investor criticism, with traders questioning the acquisition’s value.

  • Uber’s ezCater deal will combine Uber Eats’ network with ezCater’s corporate catering platform.
  • ezCater generated over $2.5 billion in bookings, with average orders exceeding $400. 
  • Retail investors worry Uber’s aggressive acquisitions could distract from buybacks and autonomous vehicle growth. 

Uber Technologies Inc. (UBER)’s $2.3 billion ezCater acquisition has failed to evoke retail traders’ enthusiasm. The deal expands Uber’s reach into lucrative group and workplace catering, but the hefty price tag and retail reaction suggest investors want more than another growth bet. 

Uber Technologies stock inched 0.06% higher overnight, ahead of Wednesday.  

Acquisition Expands Uber’s Catering Reach

Uber and ezCater have agreed to an all-cash transaction that combines Uber Eats’ restaurant and consumer network with ezCater’s catering platform. The deal will give businesses a simpler way to arrange meals for meetings, events, recurring workplace needs and other group occasions.

ezCater connects businesses with more than 140,000 restaurants across the U.S. Its platform also provides tools for managing food budgets and orders. Uber expects the deal to help restaurants secure larger orders and attract customers who may later become individual diners.

“Catering is a big business, and can be a huge revenue stream for restaurants,” said Dara Khosrowshahi, CEO, Uber.

ezCater recorded more than $2.5 billion in gross bookings during the latest 12-month period, representing growth in the high-teens percentage range from a year earlier. ezCater’s typical order exceeds $400, highlighting the appeal of the catering business compared with smaller individual food orders.

Uber’s Mega-Deal Strategy Worries Retail Investors  

Retail investors have not been happy with Uber’s 2026 dealmaking strategy, mainly because the company is spending heavily and taking on more financial risk. Its proposed €13 billion ($14.8 billion) cash deal for Delivery Hero, supported by a €14 billion bridge loan, raised concerns about higher debt and the challenges of combining businesses across many international markets.

Rather than directing the record $10 billion free cash flow toward share buybacks or autonomous vehicle (AV) fleet partnerships, Uber's appetite for mega-deals has expanded with  ezCater. Everyday investors fear this return to debt-fueled growth will dilute near-term earnings, threaten capital returns, and distract management from core AV competition threats. 

What Did UBER Retail Traders Say 

On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory. 

A user said, “Uber management needs to be replaced. They keep buying garbage companies. They need to concentrate on core business. No one owns cars anymore in major cities. Massive money to be made. Stop the stupid m&a.”

Another user said, “Unreal. Why are you buying a catering company and not executing buybacks?”

A third user said, “Gonna sell this, man. I can’t believe it, dead money for at least a year more. Tax harvest time.” 

UBER stock has declined over 15% year-to-date. 

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