Uber Technologies, Inc. (NYSE: UBER) has joined forces with Pipe, a fintech company specializing in embedded capital solutions, to provide small businesses on the Uber Eats platform with easier access to working capital. This collaboration allows qualifying restaurants across the United States to access customized, pre-approved funding directly within the Uber Eats Manager app, making capital more accessible without the usual hurdles banks impose.
Pipe’s technology integrates seamlessly into Uber Eats’ restaurant management software, empowering merchants to view tailored capital offers based on their historical revenue and cash flow. The key innovation is the elimination of traditional barriers, such as credit checks, personal guarantees, or extensive paperwork. Instead, Pipe leverages artificial intelligence and an advanced underwriting engine that evaluates each restaurant’s transaction history and business performance to deliver fast and transparent offers.
Luke Voiles, CEO of Pipe, told CNBC that this partnership is designed to meet the unique needs of small restaurants, often overlooked by conventional lenders. According to Voiles, Pipe has helped businesses grow at an average pace of 12% month over month by providing working capital that aligns with their actual operational data. This approach marks a significant shift from traditional financing, focusing on the health of the business rather than personal credit scores or collateral requirements.
The integration means restaurant owners can access capital offers inside apps they already use to manage their operations, ensuring convenience and speed. Merchants who qualify can complete their funding applications in just a few clicks and receive funds without the friction of lengthy underwriting processes. The offers also come with flexible repayment terms that correlate with the business’s cash flow, reducing the pressure often associated with rigid loan schedules.
Uber’s vice president of global commerce financial services, Hebert, emphasized that restaurants are vital partners and central to local communities. He explained that by enabling quick and flexible funding options, Uber supports restaurant owners in expanding their operations in ways that traditional loans often cannot accommodate. This initiative reflects a broader commitment by Uber to back small businesses and foster their growth.
Restaurants have already expressed appreciation for the new financing model. One restaurateur shared that the sales-based funding structure allowed them to avoid credit assessments and personal guarantees. The flexibility to withdraw additional capital up to an approved limit, combined with no penalties for early repayment, made the funding attractive. Access to working capital through a transparent, supportive platform offers a lifeline for small restaurants that face unpredictable costs and changing customer demand.
Pipe, valued at $2 billion, has been innovating in the embedded finance space by providing capital solutions inside software platforms that small businesses use daily. Their AI-driven underwriting process simulates hundreds of scenarios to maximize approval rates, currently seeing 98% of businesses that are pre-approved receive the promised funding. This embedded, on-demand capital is part of Pipe’s broader mission to make financial tools accessible and responsive to the realities of small business operations.
This new Uber-Pipe partnership will initially roll out nationally this week after successful pilot programs. It follows previous initiatives from Uber, such as the Grants for Growth program, which provided grant funding to small businesses on the platform. This development continues Uber’s focus on supporting small businesses not just with customer reach but also with operational resources like capital.
For many small restaurant owners, securing funding has long been a major obstacle. This partnership could alter that landscape by making embedded capital a mainstream resource, integrated directly into the software they rely on every day.
