DoorDash Is Now Lending Money to Restaurants | Eater
"A major food-delivery platform is expanding into financial services by offering restaurants short-term cash advances that are repaid automatically via deductions from every order they fulfill. The company frames the product as a fast, convenient cash advance rather than a traditional loan, charging a one-time fixed fee (reported up to about 10% of the advance) and determining eligibility from a restaurant’s sales history on the platform. This move follows other steps to become a full-service partner for restaurants—national shipping, paid sponsored listings, and a dominant market share—and has raised concern that restaurants could become increasingly dependent on the platform for delivery, marketing and now financing. While the advances may help struggling operators cover payroll or rent during downturns, critics worry about high effective costs and conflicts of interest for establishments that have already clashed with the platform over fees and advertising practices." - Amy McCarthy
