Bloomberg reports that "DoorDash Inc., the U.S.’s biggest meal-delivery service, is launching a financing arm to offer business loans to restaurants on its app. With DoorDash Capital, merchants will be able to apply for financing to fund business operations such as purchasing equipment, paying rent, hiring and payroll."
According to the story, "Working with Parafin Inc., a fintech startup for small businesses, DoorDash Capital will determine a repayment structure based on a restaurant’s revenue. Eligible merchants can view cash advance offers within the app and can accept terms without additional paperwork or an impact to their credit scores. Funds will be disbursed in as little as one to two business days."
Bloomberg notes that "the financing venture is the latest effort by DoorDash, which commanded 58% of the market for meal-delivery in the U.S. as of December, to expand into new revenue streams."
- KC's View:
This makes a lot of sense, especially as inflation, supply chain issues and labor costs make it harder than ever for restaurants to invest and grow. I'm not sure they'll be yearning for ther good old days when the pandemic closed everything down, but it isn't like things suddenly have gotten easier.