Uber has reportedly offered to buy GrubHub as it leans on food delivery to make up for coronavirus losses

• Bloomberg News reports Uber made an offer to buy GrubHub.
• No details of a potential deal were reported, but shares of GrubHub spiked more than 30%.
• Uber has relied on Uber Eats to make up for severe losses in its main ride-hailing business amid the coronavirus.
• Visit Business Insider's homepage for more stories.

Uber made an offer to buy the delivery service Grub Hub, Bloomberg News and the Wall Street Journal reported Tuesday, citing people familiar with the matter.

A deal could be reached by June, according to Bloomberg's sources, who also caveat that the talks could also end with no agreement.

Shares of GrubHub surged more than 30% after the report while Uber's stock price rose about 3%. GrubHub's market value was about $5.7 billion dollars on Tuesday, Uber ended the first quarter with roughly $9 billion in cash or cash equivalents on its balance sheet.

A GrubHub spokesperson declined to comment on the reports. Uber did not immediately respond to a request for comment.

Uber has relied heavily on its Uber Eats food-delivery arm to make up for severe losses in its main ride-hailing business thanks to the coronavirus pandemic.

A potential purchase or investment in GrubHub could align with Uber's stated plans to be either the No. 1 or No. 2 player in any market where it does business. As part of those plans, Uber exited seven countries last week, but other deals are not out of the questions.

In Uber's annual shareholders meeting on Monday, chief executive Dara Khosrowshahi told investors that the company was always evaluating potential acquisitions.

"We are in dialogue with many players," he said, "and because of our being Uber, the biggest player in this area, the global player, you can imagine that we're having lots of conversations. We always have those conversations with an eye towards continuing to build a great service long-term and maximize shareholder value along with it."

Read the original article on Business Insider