DoorDash CEO Tony Xu tells Stripe co-founder John Collison that municipal permitting bottlenecks for opening new restaurants have deteriorated nationally, mirroring general construction trends.
Insight
Xu: Takeaway generates 3x to 5x higher incremental margins for restaurants
“Rough math, you know, for every dollar of food that if you and I bought inside of a restaurant, you know, from the cost structure, you're gonna have 30% of that in the food and the packaging. You're gonna have 30% of it in the rent. You're gonna have 30% of it…”
Insight
Tony Xu: Ghost kitchens fail without large brand customer acquisition power
“It just turns out it's extraordinarily difficult, however, unless you're a large brand, or, you know you know, a house of brands, someone like DoorDash, to be able to attract enough customers to make that math work.”
Assertion Contradicted
Xu: DoorDash's Dot robot uniquely navigates roads, sidewalks, and bike lanes
“And the sidewalk and the bike lane. And so it's the only vehicle in the world that does that.”
Assertion Not checkable as stated
Xu: Google's food ordering failed because it couldn't manage post-checkout logistics
“I remember services, you know, Google food ordering launched in, I forget, 2015 or 16, and they allowed you to order delivery, for example from various Google services, you know, Google Maps, Google Search, et cetera, and while on the one hand it was low frict…”
Insight
Xu: Chat interfaces fail in commerce unless they solve the end-to-end job
“It's not obvious to me that it's just a chat interface, that there are, you know, all of these different components that have to be solved. And so I think You know, the way I think about it is, okay, regardless of whatever we ship whether it's on our own you k…”
Assertion Contradicted
Xu: DoorDash is only platform saving drivers $1.40-$1.90 on gas
“And we're the only platform today to take care of Dashers when there is, you know, these increasing gas prices and making sure that, you know, we have their back and that we're actually trying to help them save a dollar 40 to a dollar 90 per gallon for Dashers…”