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.

Grubhub competes in the meal delivery market with Uber, which according to reports has made an acquisition offer
Grubhub competes in the meal delivery market with Uber, which according to reports has made an acquisition offer GETTY IMAGES NORTH AMERICA / Cindy Ord

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.

Uber