Ride-hailing company Uber has agreed to buy food delivery app Postmates in a multibillion dollar deal.

Uber has been badly affected by the coronavirus pandemic, cutting a quarter of its global workforce in May. The company now looking to boost its growing food delivery service Uber Eats.

According to reports, an expected $2.65 billion deal with start-up Postmates will be announced in the United States (US).

The deal would bolster Uber and help Postmates, a nine-year-old firm that has struggled against larger food delivery rivals, reports said.

A $6 billion Uber offer this year to acquire Grubhub fell through. Grubhub was later bought by European competitor Just Eat Takeaway.

Uber said in its quarterly update this year, it lost nearly $3 billion and its rides business was down some 80% in April.

However, the company noted that it was seeing strong revenue growth for its Eats food delivery operation.

Neither Uber nor Postmates have commented on the potential deal yet.