Prime Highlight
- Uber Eats has teamed up with fintech company Pipe to provide small restaurants with quick, pre-approved funding options directly through the Uber Eats Manager app.
- The service eliminates traditional loan barriers like credit checks and guarantees, with 98% of applications approved and funds delivered within 24 hours.
Key Facts
- Pipe uses AI to analyze six months of anonymous Uber Eats transaction data, tailoring capital offers to each restaurant’s revenue flow.
- Restaurants using the service reported an average 12% monthly business growth, showing its impact on small business expansion.
Background
Uber Eats has partnered with fintech company Pipe to enable small restaurants to access capital more easily. The new collaboration combines the technology of Pipe with the Uber Eats Manager application, where owners of restaurants could receive individually tailored and pre-approved funding options, depending on the revenue and cash flows.
The main characteristic of this new system is simplicity. The process does not need credit checks, personal guarantees, and FICO scores, as was done with traditional loans. Instead, Pipe uses artificial intelligence to study six months of anonymous credit card transaction data from Uber Eats. Based on this data, restaurants are offered capital tailored to their business needs.
Pipe CEO Luke Voiles said the service helps restaurants grow without the usual barriers. He added that 98% of applications get approved, and most funds reach businesses within 24 hours. Many restaurants using the service have reported a 12% growth in business each month.
Karl Hebert, Uber’s vice president of global commerce and financial services, said the partnership helps restaurant owners succeed by offering easy access to capital. “Our goal is to provide a solution that works smoothly and helps small businesses expand,” he explained.
Unlike traditional loans, Pipe’s capital adapts to a restaurant’s revenue. This implies that during low sales, owners of these restaurants are in a position to repay the funds more easily.
This effort is in Uber Eats, a further attempt to help small businesses. In 2022, the company collaborated with Visa to award 1 million grants to restaurants struggling due to the pandemic and other crises. This additional capital access service is to further assist the restaurants to grow and flourish.
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