The food delivery business's Chief Executive Officer Matt Maloney met his Uber counterpart Dara Khosrowshahi on Sunday, and dubbed the ride-hailing company's offer of valuing one GrubHub share against 1.9 Uber shares as too low, people familiar with the matter told the Journal.
Khosrowshahi reportedly told Maloney that Uber is open to a valuation of as high as 1.925 against its shares, which would value GrubHub at $62.50 per share, according to Friday's closing price. This would still be well below GrubHub's earlier asking price of 2.15 or $69.8 per share.
The people told the Journal that a deal, if it happens, is unlikely to come in the next few days.
The merger offers the companies a chance to become market leader in the food-delivery business, with more than 55% share, in the United States, as both companies individually trail rival DoorDash.
According to Morgan Stanley analyst Brian Nowak, the merged company could save up to $600 million in logistics, marketing, and other costs, the Journal noted.
GrubHub shares closed nearly 0.5% higher at $54.97 on Friday. Uber shares closed 1% lower at $32.47 the same day.