- Delivery Hero is about to commence offering loans.
As advertised, Delivery Hero is following through on their declaration: Financial services at Delivery Hero might soon include loans too. The food delivery giant is looking for new revenue streams and appears to be venturing into the lending business. This is hinted at by a job posting currently available on their website.
Delivery Hero is currently hiring a "Data Analyst Lending" for its budding Fintech division, ideally at the earliest opportunity. This division aims to produce "cutting-edge credit products for diverse markets," including restaurant operators and drivers on the food platform.
The company guarantees potential employees a chance to work in a financially significant team, dealing with transactions in the billions. The role requires collaboration with Fintechs to enhance the data foundation for lending. Experience in business intelligence and scoring is preferred.
The team is headed by Emon Goswami, a seasoned financial manager with experience from two major Indian banks. According to his LinkedIn profile, Delivery Hero is exploring more financial products besides loans, such as 'Buy now, pay later' plans and payment cards.
Order data assists in lending assessments
Initially, Delivery Hero declined to comment on the specific credit products its team is developing. A spokesperson stated, "We are continually experimenting with new products to enhance our customers' and partners' experiences." This includes financial solutions, particularly in Latin America and the Middle East.
However, it is probable that the company is working on tailored financing deals for restaurants, similar to those already available in numerous countries. Restaurants commonly experience fluctuating income whereas expenses for rent and wages remain steady. Loans aid in bridging these gaps and are also often utilized for new store openings or major purchases.
While bank loans are an option, they may not always be the best choice for restaurateurs. The terms can be costly and funds are not always immediately accessible. Delivery services, however, typically have extensive financial data on their restaurant associates. Repayments can be linked to turnover, benefiting restaurants with inconsistent cash flow. This also reduces the default risk for delivery services.
No entry in Germany
Delivery Hero would not be pioneers in this segment in Germany. US delivery services such as DoorDash and UberEats have been offering corresponding credit products for years. In Germany, Lieferando provides a financing option. Restaurants can secure between 1,000 and 100,000 euros, with the money deposited into their account the following business day following a brief online application. Lieferando collaborates with Berlin Fintech Banxware for this offer. Also active in this area is food delivery service Wolt, which facilitates loans via its financial partner Finmid.
The potential competition from Delivery Hero among providers should be minimal, at least in this country. Delivery Hero exited the German market in 2021. The company operates in 70 countries, with strong markets in South Korea, Saudi Arabia, and the United Arab Emirates. It should be relatively easy for Delivery Hero to introduce new financial products in these markets. Unlike in Germany, there are typically fewer regulations abroad, such as in lending and customer verification.
This text was initially published in Finance Forward, the magazine for the new financial world, created in collaboration between Capital and OMR.
Delivery Hero is expanding its Fintech division with the addition of a Data Analyst Lending position, indicating their intent to offer cutting-edge credit products to diverse markets, including restaurant operators and drivers. This move could potentially allow Delivery Hero to dive into the lending business, following the footsteps of other delivery services like DoorDash and UberEats in offering tailored financing deals to restaurateurs.
