Grubhub competes in the meal delivery market with Uber, which according to reports has made an acquisition offer (Cindy Ord)

New York (AFP) – Uber has made a takeover bid for meal delivery group Grubhub, media reports said Tuesday, sparking a strong rally in shares of the Chicago-based group.

Grubhub shares rose more than 20 percent on the reports in The Wall Street Journal and other media.

The reports said Uber had made a specific offer for Grubhub but that no agreement had been reached.

A deal would enable Uber to expand the operations of meal delivery through its Uber Eats service, which has seen strong growth during the pandemic even as its ride-hailing operations have slumped.

The two firms did not immediately comment on the reports.

The Journal said Grubhub earlier this year began a strategic review that could lead to the sale of the company.

Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.