Founder’s Field Guide
Episode 28 A Human and Math Problem
Founder’s Field Guide

Episode 28: A Human and Math Problem

A Human and Math Problem

Tony Xu is the co-founder and CEO of DoorDash. We cover the origins of DoorDash, how to approach and solve difficult problems, and the leadership lessons he's learned from running DoorDash.

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[00:03:07] - [First question] - The catalytic moment that inspired Tony to build DoorDash

[00:06:33] - Network density and its role in scalability

[00:09:15] - Solving a math and sales problem simultaneously

[00:11:33] - Becoming aware of multiple problem sets for restaurant owners

[00:14:34] - Designing a team to quantify friction and turn it into useable data

[00:16:49] - How to approach difficult problems and compartmentalize them in a practical way

[00:18:38] - Accounting for high-level variance in long-term goals

[00:21:54] - Factoring in time horizons for variance and planning for the future

[00:23:08] - Slowing down an action process to minimize a high-consequence decision

[00:26:48] - Generating demand after completing their software infrastructure

[00:28:15] - Strategic choices between network health and unit economics

[00:30:32] - Why DoorDash struggled to raise financing in their seed-stage

[00:32:23] - Solving a small fraction of a larger logistics problem

[00:35:00] - Differences between local commerce and distribution centers 

[00:36:44] - Creating the DashPass subscription service and how premium experiences influence user behavior

[00:38:34] - Advantages and potential diminishing returns in servant leadership

[00:40:41] - His broader philosophy on leadership and how it’s changed over the years

[00:44:55] - Creating an incentive-aligned culture of ownership at scale

[00:47:02] - The most surprising lessons learned about company building

[00:50:38] - Unexpected positive outcomes that may emerge in other areas due to DoorDash’s growth in the coming years 

[00:53:44] - Will DoorDash’s presence change behavioral patterns in where people choose to live or start their business?

[00:55:36] - What has him most excited for the future

[00:56:55] - Kindest thing anyone has ever done for him

A Human and Math Problem

Introduction

Patrick
My guest today is Tony Xu, co-founder, and CEO of DoorDash. Tony started DoorDash seven and a half years ago. And today it's one of the largest food delivery and logistics platforms globally. With operations in the US, Canada, and Australia. In our conversation, we discussed the initial problem that DoorDash set out to solve, DoorDash's counter-intuitive approach to building their product and the surprising benefits of capital constraints indoor DoorDash's early days. DoorDash's business model is equal parts, logistics nightmare, and human coordination problem or as Tony put it, a human and a math problem. After talking to Tony, I feel his personality makes him a great candidate to solve all of these interesting issues. Please enjoy my conversation with Tony Xu.

Origins of DoorDash

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