Shares of GrubHub surged as much as 38% at their peak on reports that Uber is making an all-stock bid for the food-ordering app, which competes with the ride-hailing service's Uber Eats.
Stiff competition in the delivery space has been an "Achilles' heel" for Uber Eats and in turn Uber's bottom line, Cramer said.
"All day we heard rumors that Uber's about to acquire GrubHub in an all-stock deal that would value the business at roughly $6.25 billion," the "Mad Money" host said. "After the close, there was a report that the two companies might not be able to agree on a price, but I'm hoping Uber is willing to pay more because this would be a genius move."
Uber is rumored to be offering as much as 2.15 shares of Uber for each share of GrubHub.
"If I were Matt Maloney, the CEO of GrubHub, I would hold out. I bet you he can get 2.5 shares of Uber for each share of GrubHub," Cramer said.
In a tough delivery market, Uber Eats has gone as far as pulling out of the food delivery market in India in January as its parent company made a push to become profitable. Outside of Uber, Square in 2019 sold its food delivery service Caviar to DoorDash, which also has a dominant presence in food aggregation.
DoorDash has become "too powerful," said Cramer, who thinks an Uber-GrubHub tie-up would be additive to Postmates.
"Put them together, and I think you've got a real winner. This combination makes so much sense for the industry that I think it would actually allow Postmates to finally come public," Cramer said. "These companies can thrive in a world where there are three viable delivery services. That's just the right amount of competition."
Both companies issued their own statements later Tuesday showing interest in business moves that unlock "value" but stopped short of confirming the rumors.
The last time GrubHub was rumored to be accepting buyout offers, in January, Maloney told Cramer that the company would "evaluate any offer," adding that "there's a reckoning coming to the industry."
Trading of GrubHub shares was halted four times Tuesday as its stock popped almost 39% at its highs. The stock finished the session up 29% at $60.39. Uber shares finished the day up 2.4% at $32.40.
"In one fell swoop, this deal would create an incredible amount of value for Uber and GrubHub's shareholders," the host said. "Restaurants would end up paying, maybe, a little bit more, but the major operators would be able to offer consistent service."
"That is really worth the trade-off."