CEO of Doordash Tony Si – New Halina Consolidator in Food Delivery

During the depth of the pandemic, with restaurants across the country, face existential crisis, Dooordash The CEO Tony X had an unconventional proposal. He wanted to cut the commissions.

Chief Business Director Keith Yandel was worried that such a step would lead to a mass strike before the planned IPO company. But this did a convincing case.

“If the restaurants do not bloom, we can’t,” said Jandel CNBC in a recent interview, reminding the prospect of X. “We have to take up the leadership.”

The company eventually donated more than $ 100 million, XU Later said.

Since the beginning of Doordash on the University of Stanford University in 2013, the 40-year-old CEO moved on a glorified section and low-supply food delivery, creating a company that estimates almost $ 90 billion today. This year, the shares appeared as a pet, which jumped 23%, while NASDAQ is still decreasing to a year largely on tariff problems.

More than four years after its IPO net income remains slim. But this does not interfere with the Mission of SUS to become a branch consolidator, using a combination of cash and new debt to recharge at a time when large technological transactions remain little. Previously this month Doordash hooked a British startup food delivery Elveroo for about 3.9 billion dollars and restaurant technology company Seven rooms for 1.2 billion dollars.

“What we’ve delivered to the client yesterdayBox for Squawk‘After announcement of transactions.

This week Doordash announced cost Of the 2.5 billion dollars of convertible debt and said the proceeds could be partially used for acquisition.

A company based in San Francisco has history with competitors to increase market share. In 2019 this is Bought food delivery for 410 million dollars from the square now known as Block. Approximately two years old said that it was pay 8.1 billion dollars for the Wolt International Delivery Platform. The deal was the last big deal until this month.

When Doordash entered the food delivery market, he had to face GrubHub and seamless, who later joined the effort. This combination organization was purchased at the end of last year to the restaurant holder Excellent group. In 2014, Uber Launched Uber Eats, which is now the biggest competitor of Doordash in the US

“This is a very competitive market, and I think the merchants have a choice,” CNBC said in an interview. “What we focus on is always trying to innovate and bring new products that meet the increase in standards and expectations from customers.”

Doordash did not make XU available for an interview for this story, but submitted a statement about the company’s acquisition strategy.

“We are very picky, very patient and realize that for most companies the transaction does not work in the background,” the company said. “When we see an opportunity that brings value customers, expands our potential to enhance local economies around the world and has the way to a strong long -term profitability, we are usually pushing our chips.”

Colleagues and early investors lend to the customer’s focus for most of the SU success. Gokul Rajar who joined Amazon founder Jeff Bezos.

The restaurants were universally considered Doordash as an ally. Commissions can reach up to 30%that is a hefty incision to split. Many restaurants reluctantly paid high fees with -wit the dominant share of the Doordash market that has reached According to estimates 67%. In 2021 the company introduced Three tiers Prices, with the main option for 15% for more before price businesses.

Doordash needs a high fee to stay in black. The company’s profits in the percentage of the total market range below 5%.

Colleagues who have known Xu for decades have said that the entrepreneur for delivering products has not changed since the first days of the company.

Yandel said he once took advice from his young daughter, who complained about the routing question, accompanying him by ordering products. All employees, including XU, must fulfill orders every year and apply for Wedash’s support.

In the part of the country, known for the Pompeyutsi of its wealthy founders, has a completely different reputation.

Early workers recall the memories that this was pulled into the dilapidated green honda accord to team events, or participating in the company’s basketball games called “Knockys”, next to the animal hospital in half -alt, who has briefly named its headquarters. This also approved each proposal for the first 4,000 company employees.

SI is spent a lot of morning, responding to complaints about customer service. He often throws children into school, and after them, they say to calls with international regions, colleagues say. SE – an avid basketball lover of gold gold, but has a soft place for Chicago bulls, having spent many years in Illinois. Once or twice a week, the SU shrinks in the morning run, and will often do it while traveling to explore different quarters and shops.

This was born in China and moved with his family to Champagne, Illinois, in 1989. Growing up, he played basketball and mowing lawns to save on Nintendo. He detach Stanford’s view from the top podcas in 2021 that the experience and observation of the mischief of the racing taught him “earning his way into the best things.”

Its “characteristics became the values ​​of the company,” said Alfred Lin, an early investor Doordash and a partner in Venture Firm Sequoia.

This often attributes their entrepreneurial spirit to parents. His mother worked as a doctor in China and for a decade gathered three jobs in the US, saving enough to eventually open a medical clinic. His father worked as a waiter, pursuing a doctoral degree. SE said in the podcast that the observation of his mother gave a deep understanding of what needed a small business, which was needed in the early years of Doordash when he tried to convert restaurants into customers.

This team joined the combinator in the summer of 2013. The accelerator program for running a three -month startup is known AirbnbStrip and Reddit. Each session ends with a demo of the largest investors in Silicon Valley.

The idea of ​​Doordash has excited Paul Buchheyt, the creator of the Gmail and partner in Y Combinator. But like many other potential investors, Buchheit was skeptical of the economic model.

“You had a talented team of founders working on what I considered the idea that had potential,” he said. “This is basically a good launch formula.”

On the day of Pitch, the company was unable to lure any venture firms, but later the accountant participated as an investor.

Shortly after the demo -day Doordash collided with Saar -Gur with Charles -River -Venchur. Gur was looking for a platform for food delivery, and carried out a proper check in another company when a friend led him to Doordash.

By the end of the first meeting, they “completed each other’s sentences,” Gur said.

Lynn Sequoia originally took place on Doordash after the results of Y Combinator, but maintained a connection with the team. Lynn said he wanted to see the data that showed that the platform could penetrate the Stanford and Pala Alto, as well as hold customers. He led two institutional tours, reaching 20% ​​of SEQUOI’s shares during the IPO.

“Tony always believed that his company would succeed, otherwise they would find a way to succeed,” Lynn said.

Shortly after its combinator, Doordash hit the early block. After the football game in Stanford, the tide of orders purchased the delivery system, causing great delay, SU told the CEO Y Combinator Harry Tan Interview this year.

The founders returned orders and spent the night, baking the cookies -fascilat, and then brought them to customers the next morning.

Hummus Oren Mistie Boulton co-owner said Doordash still uses this approach. The team comes to a meeting with her every quarter, and she serves as a beta test for new products.

The restaurant, which began in Palo Alto and has since expanded into half a dozen places across the Gulf area, was one of the first customers of Doordash, who adhered to achieve more customers outside their small institution, which often had lines that threw the door.

“We just fell in love with this idea,” Bulton said. “The fact that it was upset and prompted me to work with them is a hobby. He is really one of those people who can count.”

Wall -Rate is now counting on the ability of SU has exceeded $ 10 billion in delivery orders All over the world.

The acquisition of Deliveroo based in London notes new efforts doordash to expand its presence abroad after Finland’s purchase three years ago.

Available transaction for Seven roomsNew York data platform for restaurants and hotels for reservation information, takes Doordash into a brand new category. SM said CNBC that the Doordash is “a multi-productive company that works on a global scale.”

Following the proclamation of acquisitions that coincided with a disappointing income report in March, Piper Sandler analysts have once again confirmed the recommendation to the stock.

One of the reasons for the anxiety, they said, was that “the integration of several acquisitions could create some noise soon.”

See: CEO of Doordash Tony XU: Deliveroo & Seven Rooms Deals Make us a multi -product company on the world scale