Launched in December, DoorDash certainly benefits from food delivery trends over the past year. The company’s stock price began trading at $182 per share on December 9, 2020, and has been up and down since then, but the share price has increased by about 24%.
With that momentum, two CNBC Disruptor 50 companies have started delivering alcohol, not to mention their massive international expansion plans. At the heart of these plans is CTO Andy Fang, co-founder, head of the engineering team, and responsible for the overall product vision, technology roadmap, and architectural direction of the DoorDash platform. Andy has a Bachelor of Science degree in computer science from Stanford University and joined co-founders Tony Xu and Stanley Tang to create the DoorDash concept.
CNBC recently told Fang that while groceries, convenience, wine, flowers and gifts are becoming a top priority for their platform to provide, there are many international opportunities.
The following Q&A has been edited for length and clarity.
CNBC: What is consumer behavior happening as we enter the post-pandemic world? Do people order more than before the pandemic?
Fang: Yes, more consumers are using DoorDash than ever before, ordering more deliveries than before Covid-19. However, we continue to place orders at higher rates, especially in the event of a resumption. As new and existing customer order rates continue to exceed pre-Covid averages, we continue to set new records for platform-wide order and marketplace order amounts. This also means that it has created more financial opportunities for traders and dashers.
Recent research has shown that consumer behavior is tough and even when the pandemic subsides, most consumers plan to continue delivering as much or better food from restaurants as possible. Growth. However, beyond restaurants, new industries continue to expand as a key driver of consumer engagement. Orders from non-restaurant categories such as groceries, convenience, wine, flowers and gifts increased 40% from the end of 2020 to the end of the first quarter of 2021. In addition, new and improved components of DoorDash products (such as DashPass, a subscription service), and our product DoubleDash, which bundles items from multiple vendors, offer consumers even more choice and convenience. We will continue to provide.
CNBC: I know DoorDash was recently launched in Japan and is rumored to focus on Europe ahead of – How does the opportunity for third-party delivery abroad compare to the opportunity in the United States?
Feng: At DoorDash, our mission is to empower the local economy. When we started in the United States, it was always our intention to expand our influence and provide value to merchants, consumers and dashers in other countries.
Internationally, as in the United States, there are great opportunities for sellers to introduce new equipment and products that can help increase their sales. When the pandemic started, more than 40% of merchants did not have an online channel to reach their customers. And now, we know that boosting sales online is more important than ever for these businesses.
From building an online store for direct ordering, pick-up and delivery to expanding fulfillment of white-label delivery, we support merchant businesses around the world by introducing more sellers to our services and territories. can be enriched. The opportunities before us are enormous, and as we look at the unique needs of each new country that enters, we remain excited about the impact it will have on its stakeholders. Growth.
CNBC: Tell us more about DoorDash’s early days. Have you had a hard time when you felt that your company was not successful?
Feng: All industries are experiencing ups and downs, which I think is especially true for last mile logistics and the on-demand delivery space. When we first founded DoorDash in 2013, there was excitement in the investor community. A few years later, around 2016/2017, many investors began to wonder whether players in this sector could turn a profit. As a result, we had difficulty raising funds and had to go down. We were underfunded compared to our peers, so we had to be very trained in how to allocate capital while trying to grow as a business. Fortunately, those tough times forced us to rethink the way we work and become more familiar than ever.
Many of today’s DoorDash leaders have stayed in the company at the time, maintaining the same pragmatic determination that they had at the time. By experiencing these shortcomings, we have become a faster, leaner team. The focused, detail driven decisions we relied on to be successful have become part of Doordarshan’s DNA, preparing to better tackle challenges that have arisen (and haven’t come yet) ). also prepared.
CNBC: You have led the development of DoorDash’s logistics network across the United States. What are your thoughts on expanding your logistics network into process and new markets?
Feng: Building a DoorDash logistics network is a huge undertaking and an ongoing endeavor in our company today. On the other hand, it is actually an exercise in getting as many details as possible about the real world. Where is the open parking space on the main road? How long does it take to make pizza? How cold is a pint of ice cream? – Balancing three-way market dynamics.
I’m wondering how to maintain Dashers’ flexibility and meaningful revenue opportunities, continuing to cover more and more merchants as we move forward, and ensuring that consumers always order efficiently . Balancing these priorities is an interesting challenge, and things get even more complicated when you take into account different sectors, vehicle types and social norms. The logistics considerations of dense cities like Chicago and New York are different from the suburbs we started in Palo Alto, California. Also, in Japan, where most dashers complete deliveries by bicycle and car, we may offer different delivery routes or individual bags to bring the goods to their final destination.
Above all, we know that consumer expectations have changed over the past eight years since we started, and overall, people want more and faster access. As more people were made aware of the benefits and conveniences of on-demand delivery and pickup, this expectation only increased during the pandemic.
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SourceLink DoorDash’s Andy Fang on Global Expansion and Post-Pandemic Delivery