Uber Technologies Inc. has made an offer to acquire food delivery service Postmates Inc. according to a report late today from The New York Times.

The price of the offer was not mentioned. Talks are said to be ongoing, with a deal possible as soon as Monday evening, but neither company has commented on the report as of the time of writing.

The Times report noted that the deal would also boost Uber’s delivery business at a time its ride-hailing service is struggling from the COVID-19 pandemic.

Should the deal go ahead, it would mark some consolidation in the highly competitive food delivery market in the U.S. but would not give Uber a market-leading position. According to Second Measure, DoorDash Inc. leads the market as of May with a 45% market share while GrubHub Inc., sits in second place with a 23% share. Uber’s in third place at 22%, while Postmates rounds out the top four with 8%. Uber and Postmates combined would have a 32% market share, positioning it as the main rival to DoorDash.

The deal comes as Postmates was gearing up for an initial public offering. It filed its paperwork with the U.S. Securities and Exchange Commission in February. Although the financial details of the offering had not been finalized, it was reported that it could give Postmastes a market capitalization higher than $1.85 billion, the price at which the company was valued as of its last venture capital round. With the surge in popularity of food delivery services amid coronavirus lockdowns, that figure could be significantly higher today.

Founded in 2011, Postmates was an early startup in the U.S. food delivery market but was trounced by later contenders, including Uber Eats. The company first looked at going public in October but delayed the decision at the time, citing market conditions. Its much larger competitor DoorDash filed to go public Feb. 27 on a reported $13 billion valuation.

That Uber is now interested in Postmates comes as no surprise after it unsuccessfully attempted to acquire GrubHub in May. Uber was not alone in being interested in acquiring GrubHub, which was acquired June 10 by European food delivery company Just Eat Takeaway.com NV for $7.3 billion.

Postmates had raised $903 million. Investors include GPI Capital, Tiger Global Management, London Impact Ventures, Manhattan Venture Partners, EquityZen, Glynn Capital Management, BlackRock and G Squared.

Photo: Postmates