food delivery service Door Dash Inc. will offer funding on its app to restaurants in need of business loans through the new DoorDash Capital program, according to a Bloomberg report on Wednesday (February 9).
DoorDash Capital merchants can apply for financing to pay for business operations, including purchasing equipment, paying rent, hiring employees and managing payroll, the report says.
“As we continue to listen to our partners and adapt our services and offerings to meet their needs, one of the main areas they have asked for help in is quick and easy access to capital,” said said DoorDash’s chief revenue officer. Tom Pickett written in a blog post.
DoorDash Capital will tailor its loan repayment structure to a restaurant’s earnings, the report says. Eligible business owners can view their cash advance offers in the DoorDash app and agree to the terms without signing additional documents or affecting their credit scores, often getting the money in one or two business days.
DoorDash’s funding platform adds a new revenue stream for the San Francisco-based company, following the October launch of sponsored ads on its app in a bid to increase its ad business. DoorDash controlled about 60% of the U.S. meal delivery market in December, according to the report.
DoorDash Capital joins similar products from restaurant software company Toast Inc. and payment processors PayPal Holdings Inc., Stripe Inc. and Block Inc.
Related: For on-demand cookie delivery, Girl Scouts are ditching 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.
The Girl Scouts sell about 200 million boxes of cookies each year, according to a document posted on their website. Priced at $5-6 per box in 2021, that’s a minimum of $1 billion. If DoorDash took a commission at the low end of its typical 15-30% range, the deal would net $150 million.