Food delivery service DoorDash Inc. will offer financing on its app to restaurants that need business loans through the new DoorDash Capital program, according to a Bloomberg report Wednesday (Feb. 9).
DoorDash Capital merchants can apply for financing to pay for business operations, including buying equipment, paying rent, hiring employees and meeting payroll, the report says.
“As we continue to listen to our partners and adapt our services and offerings to meet their needs, one key area where they have asked for support is quick and easy access to capital,” DoorDash Chief Revenue Officer Tom Pickett wrote in a blog post.
DoorDash Capital will craft its loan repayment structure to a restaurant’s revenue, the report says. Eligible business owners can see their cash advance offers in the DoorDash app and accept terms without signing additional paperwork or affecting their credit scores, getting the money often in one or two business days.
DoorDash’s financing platform adds a new revenue stream for the San Francisco-based company, following its launch in October of sponsored listings on its app in a move to increase its advertising business. DoorDash controlled about 60% of the U.S. meal delivery market as of December, the report said.
DoorDash Capital joins similar products by restaurant software company Toast Inc. and payment processing firms PayPal Holdings Inc., Stripe Inc. and Block Inc.
Related: For On-Demand Cookie Delivery, Girl Scouts Ditches Grubhub for DoorDash
In January, DoorDash partnered with Girl Scouts of America to sell Girl Scout Cookies through its digital marketplace to allow customers to order cookies online for delivery or pickup at in-person cookie booths.
Girl Scouts sell about 200 million boxes of cookies each year, according to a document on their website. At the 2021 price of $5-$6 per box, that’s a minimum of $1 billion. If DoorDash took a commission at the lowest end of its typical 15-30% range, the deal would bring in $150 million.
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