NEW YORK: Uber has announced to have bought food-delivery service Postmates for $2.65 billion in stock.

Uber is banking on food delivery to help sustain its business during the coronavirus pandemic, as demand for ride-sharing has plunged.

In its first-quarter earnings call, Uber said that gross bookings revenue for its Rides segment was down 80% in April from a year ago, while gross bookings revenue in Eats was up more than 50% during that same period.

Postmates is the fourth-largest U.S. food delivery service by market share and has struggled to compete nationally against DoorDash, GrubHub and Uber Eats. Still, the company has had success in specific urban areas such as Los Angeles and Miami.

Postmates had reportedly filed confidentially for an IPO in February 2019, but delayed its offering later that year amid deteriorating market conditions and tough competition,