Uber Eats has launched an embedded lending service for restaurants through a partnership with lending provider Pipe. The program will deliver pre-approved capital offers directly within the Uber Eats Manager app, targeting small businesses that typically face challenges in accessing capital.
This follows a similar trend we are seeing across food delivery platforms. Just a few days ago, I covered how Bolt Food launched embedded lending for restaurants via a finmid partnership (plus many more before that), indicating that embedded finance is becoming a standard offering in the food delivery ecosystem.
Streamlined Process Without Traditional Credit Requirements
The Uber-Pipe partnership eliminates traditional barriers, such as credit checks and personal guarantees. Instead, Pipe uses AI to analyse six months of anonymous credit card transaction data from Uber to determine capital amounts. The process is entirely embedded within the Uber Eats Manager dashboard, where eligible restaurants see customised, pre-approved offers based on their platform performance.
Uber selected Pipe specifically for its small business-focused approach and seamless integration capabilities. Pipe has been offering lending solutions since 2019, but initially focused on serving businesses directly, most notably with a financing product for software-as-a-service companies. However, since a change in leadership and re-focus of the company, Embedded Finance has been its primary focus. Uber Eats is likely their biggest partner to date.
Revenue-Based Repayment Model
Similar to the Bolt Food offering, Uber's program utilises flexible repayment terms tied to business performance rather than fixed monthly payments. The rollout begins this week across Uber Eats restaurants in the US.
What’s quite interesting for me here in Europe is that Uber Eats remains the only major food delivery platform in Europe without an embedded lending offering. Given this US launch and the trend across competitors like Bolt Food, Wolt, and Glovo, perhaps a European expansion will follow soon?
You can find the full story on CNBC.
