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Uber-Grubhub Deal Hinges on Breakup Fee After Narrowing Price Gap

  • Grubhub said to seek reverse breakup fee if U.S. blocks merger
  • Potential tie-up is already drawing scrutiny in Washington
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Photographer: Gabby Jones/Bloomberg

Uber Technologies Inc. and Grubhub Inc. are haggling over a breakup fee after nearing an agreement on a merger price, according to people familiar with the matter.

Grubhub wants Uber to agree to pay it a cash sum should U.S. regulators block a proposed deal to combine two of the country’s largest food-delivery operators, said the people, who asked to not be identified because the matter is private.