Uber teams with fintech to provide capital to restaurants
Uber Technologies Inc. is partnering with financial technology company Pipe Capital to make customized capital offers to eligible restaurants across the U.S.
Through this relationship, retailers on the Uber Eats delivery subsidiary of Uber will have access to Pipe Capital through Uber Manager, a platform that retailers can use to monitor and manage their businesses. For eligible retailers, Uber Eats will show capital offers from Pipe in Uber Eats Manager that are customized based on restaurant revenue, cash flow, and business performance.
Pipe assesses risk through its underwriting engine to make what it says are personalized, pre-approved capital offers with transparent and up-front pricing.
"We are happy to team up with Pipe to bring working capital to Uber Eats merchants across the U.S.," said Karl Hebert, VP of global commerce and financial services at Uber. "Restaurants are our partners at Uber, and the backbone of our communities, yet many struggle with access to capital. This collaboration is a step forward in our mission to support local businesses and help them succeed."
Other Pipe features Uber is offering to restaurants on its Uber Eats platform include a multi-draw advance, transparent terms, and flexible payments that adjust to meet the performance of their business, as well as a dedicated support team. Rather than requiring credit checks, personal guarantees or extensive documentation, capital offers are based solely on historical business performance and cash flow.
"Uber Eats is an integral part of how its restaurant partners operate, making access to working capital a natural next step," said Luke Voiles, CEO of Pipe. "Working with Uber, Pipe is able to move fast to understand the needs of these restaurants and deliver capital where traditional banks have failed. Together, we’re unlocking growth for restaurants by finally putting long-overdue capital within reach."
After early pilots, this project will start rolling out widely to restaurants on the Uber Eats platform this week.
Uber Eats expands services
The new financing partnership with Pipe is Uber’s latest effort to provide retailers new offerings via its Uber Eats platform beyond delivery. Uber Eats recently launched partnerships with dining reservation network OpenTable and CPG food product brand Heinz while also offering two new digital deal-finding services.
[READ MORE: Uber Eats teams with OpenTable, Heinz; gives access to deals]
Uber Eats app users in the U.S., Canada, Mexico, U.K., Ireland and Australia can make reservations in the Uber Eats app. Members of the Uber One paid subscription service also receive exclusive access to prime tables at the top local restaurants.
Customers can book a ride to the restaurant in one tap, and OpenTable VIP loyalty program members will soon be able to use their points on the Uber and Uber Eats apps.
In addition, the new Heinz Verified program is designed to single out restaurants that serve Heinz food products, such as ketchup and mayonnaise. Heinz parent Kraft Heinz is collaborating with Uber Eats as its inaugural platform partner for the program.
And when app users create a grocery list, Uber Eats will compare prices within the store or recommend a nearby grocery store with better deals for their items via a new tool called Savings Slider. Customers can slide to the right to see better deals, confirm their swaps, and obtain savings.
Meanwhile, an app feature called Dine Out enables users to discover and claim in-person dining deals directly from the Uber Eats app.
