Merchant Financing: A New Restaurant Financing Option on Uber Eats

Traditional bank loans can be complex, lengthy, and difficult to obtain, while more readily available funds can feel risky when working with an unknown entity. Merchant Financing* — provided by financial technology company Pipe — is now accessible directly in Uber Eats Manager. Merchant Financing aims to offer eligible restaurants a streamlined path to additional financing.

Uber is working with Pipe so that eligible restaurants on Uber Eats have access to straightforward financing to fuel their business.

Check out Merchant Financing here.

What is Merchant Financing?

Merchant Financing is a solution embedded in Uber Eats Manager that provides eligible Uber Eats restaurants with access to working capital — no hard credit check required, and no impacts to your credit score.

Funds are disbursed in the form of a merchant cash advance, which is a lump sum payment to a business (in this case a restaurant on Uber Eats) in exchange for an agreed-upon fixed percentage of its future sales. Capital is provided and serviced by a third-party, Pipe.

Payments to Pipe will be automatically deducted from future Uber Eats payouts.

Provisioned cash advances can be used for business-related expenses. Think of it as a resource to help you run your business. Here are some examples of how you might use additional financing:

• Managing operations
  
  
  • Financing restaurant equipment
    
    
    • Equipment: Replace appliances like ovens and refrigerators
      
      
    • Unexpected costs: Repair a broken light fixture or supplement your food budget
      
      
  • Tech: Pay for new in-shop monitors, POS equipment or security systems

• Supporting growth
  
  
  • Upgrades: Meet increasing demand by purchasing additional storage space or purchasing new appliances, even if your existing equipment isn't broken
    
    
  • Interior enhancements: Upgrade tables and chairs, worktops or carve out an area to make delivery hand-off easier
    
    
  • Staffing: Take on more employees during busy times so you can accept more orders

How to know if a restaurant cash advance is right for your business

Deciding whether or not to accept a cash advance offer can be a complex decision, and one that should be made carefully depending on your business’s needs and priorities. Below are some benefits and considerations of merchant cash advances with Merchant Financing, provided by Pipe, to help you think through this decision.

Potential Benefits

• Simple, streamlined access: Offers are based primarily on your historical revenue, not your credit score — and there are no personal guarantees required. Your business can qualify in a few clicks and have funds deposited in your account in 48 hours or less after approval.

  
  

• Flexible payments: Your payments are a percentage of your Uber Eats sales, so when sales are slow, your payments decrease accordingly.

  
  

• Dedicated support: Pipe’s team is here to help with anything you might need. Reach out by emailing Pipe at ubersupport@pipe.com, and they’ll be in touch soon.

Potential Considerations

• Cost Structure: Because Pipe takes on a higher risk by not requiring collateral or performing a hard credit check, the financial cost may be higher than a traditional loan. However, unlike traditional loans with fixed monthly payments, Pipe’s model flexes with your business performance, so you may pay more in months when your business is doing well and less when things slow down. It’s essential to consider what makes sense for your business when making important financial decisions.

  
  

• Impact on cash flow: Payment is directly tied to your restaurant’s Uber Eats payouts. When sales are lower, the payment amount decreases. When sales are higher, the payment amounts will also increase. It’s important to consider your future revenue, also taking into account other costs such as your Uber Eats marketplace fee.

How Merchant Financing works

Accepting a Merchant Financing offer

1. Pipe determines if your restaurant is eligible for Merchant Financing based on its historical performance on Uber Eats
   
   

2. If your restaurant is eligible, then Uber will send an email to individuals who are affiliated with your Uber Eats storefront to notify them of your available merchant cash advance offer. You can also view your offer in the Top opportunities section of your Uber Eats Manager homepage.
   
   

   1. Note: Pipe will pre-approve and customize offers for each eligible restaurant storefront based on its sales history
      
      

3. You’ll be directed to the Merchant Financing page on your Uber Eats Manager dashboard, where you can complete Pipe’s application process:
   
   

   1. Select Unlock capital
      
      Note: Selecting Unlock capital doesn’t commit you to a cash advance—you’ll be taken to an application page to review and choose your options
      
      
   2. Select the amount you would like to request in the sliding scale
      
      
      1. Note that your payment amount will include both the cash advance offer amount and a one-time fee. The final amount is reflected in the Total payment amount. There are no compounding interest charges, requirements for personal collateral, or additional fees when sales are slow.
         
         
      2. Tip: If you have any remaining limit left from your current offer, you may be able to access that amount until the current offer expires. If interested, you should contact Pipe via your dashboard for details. Your up-to-date limit can be found at the top of your Merchant Financing dashboard.
         
         
   3. Enter your business details, such as your official business name and address
      
      
   4. Enter business leadership details, such as the restaurant owner’s name and contact details
      
      
   5. Review the details of your advance
      
      
      1. Double-check the advance amount and one-time fee: the Total payment amount is the amount that you will be required to pay
         
         
   6. Select Accept to confirm
      
      
   7. Once you have accepted a Merchant Financing offer from Pipe, Pipe will typically provide funds in 1-2 business days
      
      
      1. Funds will appear in the bank account associated with the Uber Eats storefront

Payment

1. Your cash advance will be paid as a portion of each of your Uber Eats payouts. No action is required to initiate payment.
   
   
   1. Please note that payments will be deducted from your payout in every payout period unless your total payout amount is $0 or less
      
      
2. You can track payment progress directly on your Merchant Financing page of Uber Eats Manager, and therefore time to pay will depend on your restaurant’s sales on Uber Eats
   
   
3. There’s no payment deadline, and therefore time to pay will depend on your restaurant’s sales on Uber Eats
   
   

Note: There are no minimum payments or set payment amounts. Because payments are calculated as a percentage of your sales, payment amounts adjust based on your restaurant’s sales in a given payout period. Uber receives a commission for each advance.