GRUB GrubHub Inc

By Cara Lombardo 

Uber Technologies Inc. is seeking to acquire GrubHub Inc. in an all-stock deal that would unite two of the biggest players in meal delivery at a time when the coronavirus pandemic has sparked a surge in demand for their services.

Uber, which in addition to its flagship ride business operates a big meal-delivery unit known as Uber Eats, earlier this year approached GrubHub with a takeover offer and the companies continue to discuss a possible combination, according to people familiar with the matter.

Grubhub recently proposed a deal in which its shareholders would receive 2.15 Uber shares for each Grubhub share, some of the people said. Uber's board is expected to review that proposal in the coming days. Before news of the bid broke, that would have amounted to roughly $68 for each Grubhub share. Grubhub's shares closed at $46.79 Monday and jumped more than 25% Tuesday on the news.

It is not guaranteed the talks will produce a deal.

Should one come to pass, it would reshape the meal-delivery business, a key pillar of the new economy whose prominence has been heightened by the pandemic.

As of earlier Tuesday morning, GrubHub had a market value of $4.4 billion while Uber's was $54 billion.

Write to Cara Lombardo at cara.lombardo@wsj.com

(END) Dow Jones Newswires

May 12, 2020 12:30 ET (16:30 GMT)

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