YouSaid · the spoken record

Tony Xu

lines on the record: 87
first: 2019-01-09
most recent: 2019-01-09
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Right. And how do you look at that market then when you look at a market of that, of how do you compete against an Uber, which has a fleet of cars that are already moving, they already have a fleet, essentially. Yeah,”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“Well, I think that's probably too early to say on the exact caviar. Yeah, I think that's too relevant, but I think if you look at just how consumers are buying and where they're buying, it's really going to two players right now.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, I mean, I think if you look at where the US is, I mean, there's two players gaining share. It's DoorDash and Uber. And DoorDash is growing 65% faster. I just got an”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“A bunch of teams, we have engineering, essentially, we have marketing essentially, we have a few other things centrally. And so building out the fleet city by city, marketing to get the business going in each one of those cities, it's almost like starting a new business every single time.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, yeah, yeah. It's a North America today. Going to cities is expensive. We have to build the fleet. We have to sign up restaurants, which requires salespeople. We have to hire people centrally. This is one of the hardest things that we do, which is we run a decentralized operation city by city. But we also have central teams.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“And in terms of, and then whatever they get on top of that is extra money that they would get. What they're selling, right? So when you get this much money, a billion dollars in investment, what are you doing with that money?”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so we collect money two ways. First, we collect a fee from consumers. And so that's in the form of a delivery fee and sometimes a service fee. And the restaurants pay us a commission on the order.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“We're back with Tony's shoe and Christopher Payne, the CEO and CEO of DoorDash. One of the things that I think people don't really understand is the economics of these things, how you guys make money. I'd like to explain it. Explain Tony if you could how you all work when you have these relationships.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, I mean, I think they thought they had a system that could do it. They did it a little before sort of DoorDash got to critical mass. I'm not sure whether in today's world where DoorDash exists, it's in 3,000 cities, if that would make sense to start from scratch. This is challenging. It's challenging. Software is one of the reasons I joined the company. You know, it's like you have to predict every night in like three mile circles around the country how much food is going to be needed in that. And so therefore, how many drivers are going to be needed? Super challenging to do that. A very hard software problem. And then the thought of like being able to balance supply across just your one store. It just doesn't work. It's why it's never gone beyond pizza predominantly as an individual store thing. It just doesn't work.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“That's our recommendation, is they should do both. They should be on DoorDash and they should have their own channels. And many do. Wingstop does, Chipotle does, five guys does, but many do not. But our pitch is you should do both. But the ability to build a last mile logistics platform, a technology platform, is very, very challenging. That's what I'm saying.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“Behind the scenes, that's DoorDash doing the delivery. They're also on DoorDash's application from a consumer perspective. If you're an employee at Chipotle, you wouldn't even know. So there's just an on-demand order coming into the point of sale. They fulfill that to a DoorDash dasher that comes into the door and it goes well. The business is so nascent. It's so early that the tide rises for everyone. When we run a promotion on DoorDash with Chipotle, they do more in-store when they run a promotion in store. We do more on DoorDash itself.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“You're starting Forever, wherever. So, Chris, talk about their operations of that, because one of the things that you're doing is giving them, at some point, might want to do that themselves or have their own business doing it. And one of the things you guys have done more than any is target these big chains.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“Going into the story. And this is the biggest business model shift in commerce. Restaurants have three kinds of costs. They have people costs, they have food costs, and they have real estate costs. In the delivery business, they really only have food costs. They are not going to add extra real estate. They don't even need to add extra help in the store until it gets really, really busy. So The delivery business is really a great business model for most of these stores, and I think this restaurants are starting to get that. You're starting to see that from a lot of these national restaurants that are doing this for the first time. When we announced many of these delivery partnerships, I mean, this is the first time that Wendy's or a Chipotle or a cheesecake factory have done delivery in almost 40, 50 years.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“Wasn't a lot of things. There wasn't. Yeah, I think there were at least three big things. The first is that there wasn't a consumer demand. And today, thanks to many different types of companies over the past decade and a half, since WebEnd's founding have taught us how to shop online for just about anything. Second, to your point, there wasn't mobile. So there wasn't this ability to tap onto this on-demand workforce. And a comment there is that there's also changes in labor market. One of the things that's similar about the dashers on the DoorDash platform that fulfill a lot of the deliveries and the consumers is that they all value their time. And as a result of that, they're picking and choosing their jobs wherever and whenever they live and work. And the final thing I would say here is that a lot of the merchants now are ready. They're ready to make this transition from selling experiences to also selling convenience. And I think this is the greatest business model change.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“For us, it wasn't mobile. There wasn't a lot of things. There wasn't a lot. There wasn't a practice of doing it. People didn't get used to doing Uber. People didn't get used to doing it in the way they order now.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“Oh, sorry. Yeah. So WebVan was a grocery delivery service in which they built these warehouses and cities. It would be magnificent. Yeah, it was a great team that would bring these groceries to her home. And the root cause, at least when I saw some of the data, was that there wasn't enough demand. It was just too early. And actually, one of their cities was profitable. That was actually San Francisco at the time. But because there wasn't enough demand in other markets and because they had invested so heavily in these warehouses, which and timed that with the downturn, it was difficult to raise further capital and that's why the business shut down.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so it's actually kind of ironic because we share the same investors as WebBan. If you think about DoorDash's earliest investors, Andy Ratcliffe is a seed investor in DoorDash. He was an investor from Benchmark and Web Van. Sequoia Capital, John Door from Kleiner Perkins, all three of those investors were some of the original investors in WebbN. And we're lucky.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“It went great. Didn't match tray. It was definitely a spike left. No question. So the conceptual idea, you had been working in Amazon just selling, just regular selling, and Amazon had not gotten it. Amazon had been essentially a retailer that used online services to get Amazon.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“I've been around a while, so I was in Microsoft for a long time, 15 years, right out of college. And then I was at Amazon. I was one of the first GMs beyond books. Amazon was just a bookseller when I was there. I did a little startup that got sold to eBay and I ended up running eBay North America and then prior to joining DoorDash, I did an ill-fated stint as the CEO of Tinder. Yeah.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“And, you know, on most nights, like tonight's Tuesday, you're going to have too many. And you can't just flex up and down to meet your demand. And the second challenge is just the way that delivery systems are set up is that they're set up in routes. They're not set up to do things just in time. And that's why FedEx does not deliver to you on demand. And it's also why Amazon and others don't do that as well. So we believe that there was this opportunity to help all these businesses effectively. Make the shift from selling new experiences, i.e., you're going into the store. Convenience, and they need a business partner to help them. They need a delivery network to help them. They need marketing to help them. And we plan on building all of the services for them.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, it's a lot. I mean, 10 to 15 a week and you're running a 400 square feet inner square feet shop, you're going to go out of business, just a matter of when it's not like delivery hasn't been done before, but in their defense, why is it that... Why is it that 99% of businesses don't deliver? Why is it that 85% of restaurants don't deliver? And so my co founders and I did some deliveries ourselves and we figured out two things. One, it's impossible basically to have your own delivery fleet. You never have enough if there's a spike, let's say Stanford throws a midterm or something like that”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“Long story short, she had to work three different jobs, one of which was at a restaurant to save up enough money to open up a medical clinic, which she did after 12 years. And she now still runs in her 19th year. And so we started the company wanting to help people like her. And we went to different businesses in the Bay Area, whether they're restaurants or cake shops or retailers. And a few of them would tell us how they would turn down 10 to 15 delivery orders a week, which was just absurd.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, we started the company to really help small businesses and people like my mom. I grew up working out of my mom's restaurant as a dishwasher My mom's story is one where she came to this country. She wanted to be a doctor, but the US didn't recognize her license because we emigrated from China. It was a different license. And we only had $250 in the bank, so we couldn't put her through school.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“All right, let's talk a little bit about the founding. Tony, why don't you talk a little? Because not everybody knows who you are. Explain because there's a bunch of these services, but talk about how you decided to start it. Yeah, we started.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, I mean, I think that's right. I think one of the things we're trying to do is empower local businesses. And a lot of local businesses do not have the capability to deliver on their own. One of the things that started the company with Tony was going door-to-door and he talked to merchants and they were having to turn away businesses, catering business, because they couldn't deliver cookies in this case. And so one way to think about this is DoorDash, we're trying to sort.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“And that largely hasn't changed in the last four decades. However, that's not the way we shop. I personally don't know when I'm going to eat for dinner tonight. I don't know when I'm going to buy my next Coca-Cola can or pair of jeans. I'm just going to buy them when I need them. And I think most people do. And so there hasn't existed this local real-time service. If you think about it, companies like Amazon have certainly grown. Delivery of their own goods. There doesn't exist that system for all the businesses on the streets”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so I mean, I think it's important to start with one of the earliest pioneers in this space, which was FedEx back in 1972. And actually many of the models that you talked about, whether it's the Amazons or other types of retailers, really still are predicated on that model, which is we go door to door to door and we make drop-offs and we drive pretty much the same routes every day. It's the milk person's route.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“Know, because we are a last mile logistics platform and power, say, Walmart's deliveries, Amazon is a potential future ally or there are potential competitor. There is a service called Amazon Restaurants. It's very, very small today, sub 5% market share. So it doesn't seem to be a major initiative for them. But I hope to see them as an ally in the future because we're connecting all local businesses to all local consumers. That's the vision that Tony created and want to be able to deliver anything to anyone in real time.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“Well, I mean, so I think what you see is that there have been companies that started in the past and most of these companies, whether they're the grub hubs of the world, were really Their lead generation companies. They didn't do the deliveries themselves. As a result, most of the market was actually not served. So outside in New York City, nobody did delivery. That's the biggest thing. And so what DoorDash has done is really allowed any one of the $250,000 restaurants that we serve today to offer that. And so that is a big part of why we're the number one player.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“And so that's really still the state of affairs for the market. But in terms of the big players, I mean, I think you're seeing a couple of players rise to the top. We've been the fastest growing since, I mean, for the past year, year and a half, growing now over 250% year on year.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“What does that mean? Well, so food, the restaurant business will see about $800 billion in sales in 2017-2018 and about 5% of that is delivered. But if you actually look in certain segments like pizza, we all know pizza is delivered. Half of pizza sales actually are delivered. But non-pizza, it's a single digit percentage number. So we're still in the super, super early innings. And I think that's one of the things that's not well understood. It's going to be the largest industry out there because we do it 20 times a week. We eat 20 times at least a week.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so there's always been a lot of players. I mean, food is a big category. And I think the misunderstood thing about food is that it's actually largely still undelivered.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“So talk about the delivery business in general. I mean, there's a million competitors in this space. When you started in 2013, they were talking, Google was sort of wandering around Amazon, obviously, and others. So talk about your principal competitors right now in this space, because I think people are confused because there's Ubers involved, UberTs, and things like that.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, a lot of them are the chains, Wendy's, Chipotle, Cheesecake Factory That's more than all of our peers combined. We're starting to deliver other types of things. In 2016, we built our drive platform, which lets stores deliver through their own apps and their own websites. So today we deliver the vast majority of Walmart's groceries in about 500 stores, 70 markets in the US. So a lot's happened.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“So, DoorDash is on track to be the largest delivery platform in the US. And it's I mean, it really was the culmination of a lot of things we did when we founded the company. But 2018 kind of is when a lot of these things materialized. For starters, we 5Xed our geography. We started the year in 600 cities. We're now live across 3,000 cities. And at some point in next year, we'll be serving over 75% of the U.S. households. We now serve 69 of the top 100 restaurants in America, which is it's the chance.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“So I just want to sort of get a sense. Why don't we start with you, Tony? Where the company is now? There's been a lot of different stories. We've written a bunch of stories about where it is right now. Why don't you give us an update of DoorDash?”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT
“Hi, I'm Kara Swisher, editor at large of Recode. You may know me as someone who gets avocado toast delivered to my house every day because I'm told that's what the millennials do, but in my spare time I talk tech and you're listening to Recode Decode from the Vox Media Podcast Network today in the red chair is Tony Shu and Christopher Payne, the CEO and COO of DoorDash. It's the on-demand food delivery app that Tony co-founded in 2013. Tony and Christopher, welcome to Recode Decode.”
2019-01-09 · Decoder with Nilay Patel · Recode Decode: DoorDash CEO Tony Xu and COO Christopher Payne · IDENTIFIED FROM THE TRANSCRIPT