American Dreamers is a collection of conversations with main Asian American entrepreneurs and enterprise leaders by which they open up about every thing from their startup tales and firm constructing to confronting racism and making it in America.
Andy Fang is the chief know-how officer and one of many co-founders of DoorDash, everybody’s favourite meals supply app. Andy and his co-founders, Tony Xu and Stanley Tang, began the corporate in 2013 whereas they have been college students at Stanford. Eight years later, DoorDash is the biggest native logistics firm within the U.S., servicing tons of of 1000’s of retailers and tens of tens of millions of shoppers, with over $3 billion in revenues in 2021. DoorDash went public in 2020, making Andy, who’s not but 30, a billionaire. Not dangerous for his first job out of faculty!
In these edited excerpts from my dialog with Andy, he tells me about his upbringing, how he and his co-founders began DoorDash, good and dangerous surprises that he encountered alongside the best way from thought to IPO, and a number of the challenges he confronted with scaling the tech stack and himself as the corporate grew. We additionally talk about his reactions to problems with bias that Asian Individuals face in Silicon Valley and the nation extra broadly, and Andy tells me what the American Dream means to him.
Let’s begin with the place your loved ones’s from and the place you grew up.
Each my dad and mom immigrated to the USA from Taiwan. They met and had me right here. I’m the youngest of 4, born and raised close to San Jose. I went to Stanford and we began DoorDash right here, so I assume I by no means actually left the Bay Space.
When did you get into know-how?
Rising up in Silicon Valley, I used to be uncovered to laptop science very early on. One summer time, after I was in elementary college, my mother didn’t need me to only sit round the home. So she made me and my brother take a summer time class in fundamental coding. I realized methods to write up some IF statements and for-loops in Java, fascinating issues like that.
Java was truly my first language, too. And the way did that summer time coding class ultimately result in DoorDash?
Nicely, I met one in all my co-founders Stanley [Tang, DoorDash CPO] my freshman yr at Stanford. We have been in the identical dorm and we’d tinker and construct a variety of stuff on the facet. We constructed a social calendar app with group messaging, again within the day, which we tried to persuade our mates to make use of. We have been simply exploring net and cellular applied sciences, however nothing actually got here of it.
Then we took a joint engineering-and-business-school course referred to as “Startup Storage.” And that is truly the place we met Tony [Xu, DoorDash CEO and co-founder]. Tony’s mother was a small-business proprietor and the three of us bonded over our curiosity in utilizing know-how to assist native companies.
We ended up speaking to tons of of native companies within the Bay Space and we realized that supply was a ache level, which was fascinating since you would possibly’ve thought that supply was one thing that had already been solved for — pizza supply has been round without end — however while you tried to get meals delivered in Palo Alto, again in 2013, it was actually solely Domino’s and the native Chinese language restaurant.
So we began out with testing an thought referred to as PaloAltoDelivery.com. And that’s the place the DoorDash story started.
Tony was an MBA pupil on the time and also you guys have been undergrads. How did your relationship and roles evolve?
We truly received alongside very well. I believe one of many issues that made our founding group particular is that all of us revered what the others dropped at the desk. Tony was the enterprise man and had earlier relationships with some traders. He revered our experience, which was know-how for me and, for Stanley, it was extra the product design facet of issues.
Was it clear again then that you just have been going to deal with engineering and Stanley was going to deal with product?
Yeah, I believe it was apparent from the start. I had a extra in depth background in laptop science and Stanley actually received into it as a result of he needed to construct issues. In order that a part of it was very simple for Stanley and me to delineate. And Tony was hitting the streets, speaking to retailers, whereas we have been coding. The roles naturally sort of fell into place. However we nonetheless had a variety of enjoyable founding tales of simply getting the product off the bottom the place not one of the official roles mattered.
Might you share?
Nicely, we did the primary couple of hundred deliveries ourselves, and we have been nonetheless in class on the time, so we’d take turns. One in all us would play the dispatcher whereas the others went out and fulfilled deliveries. I’d be on the telephone, and Tony’s calling me, telling me which orders to choose up and in what order, and I’m attempting to put in writing all of it down on a scratchpad whereas additionally looking for parking. After which the client needs to pay with a bank card, Oh wait, Did I keep in mind the Sq. card reader? And since we have been in class, we have been initially solely open on the weekdays, from 5 to eight, whereas our early prospects, who have been largely Stanford college students, largely needed supply over the weekend. It was frantic.
When did you guys determine this may very well be greater than a college mission?
It was within the spring of 2013. Stanley and I had internships at varied tech corporations lined up for the summer time. Tony was graduating from the [Stanford Graduate School of Business]. So, it was an actual resolution level for us, and we determined, okay, let’s go all in. That summer time was after we rebranded the corporate as DoorDash and actually dedicated to seeing what we might make of it.
And now, simply eight years later, have a look at what DoorDash has change into. What stunned you alongside the best way?
It occurred rather a lot quicker than I’d’ve thought. In some methods it is unreal to consider the journey we have been on. There’s been a variety of luck that is gotten us up to now, when it comes to our timing out there and the kinds of individuals we have been in a position to persuade to hitch our firm. For myself, particularly — a brand new faculty graduate and not using a community to recruit from — it was robust again then to persuade engineers to take the leap of religion with you.
What we needed to do was guess on individuals earlier than they turned credible within the trade, as a result of these have been those we might afford. And people are the individuals who usually are prepared to take these dangers, particularly after they’re actually younger. A philosophy we had within the early days was investing in “slope over y-intercept” — believing in individuals’s potential and hiring for that. And I believe that may be very relevant to us even right this moment. Because of this, we have been in a position to construct a extremely robust group. Most of the nice surprises we have had, after I take into consideration the final eight years, are the individuals who’ve been in a position to step up and scale with us.
Had been there any disagreeable surprises?
Though our firm was rising very well and our inner metrics have been nice, we had hassle elevating funding in 2016 and thru 2018. It was a bear cycle throughout the investor neighborhood. It pressured us to buckle down, be fiscally accountable, and develop profitably. It was a fairly robust time for the corporate, although. We noticed a good quantity of attrition throughout many various departments throughout that interval, however we additionally had lots of people who stayed by means of it.
I count on that we’ll undergo tough instances once more. It is inevitable. However I believe the DNA we have constructed — the perseverance, deal with the purchasers, and working on the lowest stage of element — that core DNA is embedded in our management and the individuals who’ve endured with us. And I really feel actually assured that the subsequent time we face obstacles or challenges, we’ll have the ability to work by means of them.
As you realize, Asian Individuals, particularly East Asians, are underrepresented on the government stage. And one motive, many individuals consider, is the notion that East Asians lack what individuals right here name management abilities or government presence. I do know your skilled path is atypical and also you’re in some methods nonetheless early in your profession, however have you ever felt or witnessed that bias?
That’s one thing I’ve heard, however given the truth that our founding group had such robust East Asian illustration, I do not suppose we felt it a lot. Regardless of the notion, it’s not the fact at DoorDash. And hopefully, the place that I’m in reveals different individuals who come from the same background that there is nothing stopping them from with the ability to accomplish nice issues as an entrepreneur or government.
Because the technical co-founder, what was the toughest technical problem you confronted each to start with when it was mainly simply you after which as you scaled up?
To start with, I’d say the toughest technical problem was simply attempting to get issues out quicker, as a result of that was an important factor to hitting our subsequent milestone. There have been so many merchandise we needed to construct for patrons, for Dashers, for retailers, inner assist instruments, instruments for our operators, launching and managing areas and new markets. There’s an enormous breadth of merchandise that it’s a must to construct while you’re ranging from scratch. And there was a variety of strain to get the naked minimal merchandise throughout the board to assist all our varied audiences, exterior and inner.
As we have gotten greater, the problem is discovering the steadiness of sustaining or growing that velocity, whereas ensuring your techniques can scale appropriately. We had some challenges with scaling our structure and it was a humbling expertise for me, as a result of I’d by no means overseen large-scale distributed techniques. So we had to usher in engineers from the skin who did have that have, to return in and make selections on the place to take our know-how stack. And it was essential for me to let go of a variety of these selections for us to have the ability to get to that subsequent stage.
Eight years in the past, you guys dreamt of beginning this firm and it is grown up a lot quicker than you ever anticipated. What are you dreaming up now?
There are a few issues we’re actually enthusiastic about at DoorDash. Supply is clearly one thing that we’ll proceed to assist, however we wish to broaden the choices we have now on DoorDash past eating places. We have seen a variety of promise within the comfort and alcohol and grocery areas. And I believe there are a variety of different alternatives to assist prospects join with eating places and have interaction extra with retailers than simply by means of supply, whether or not that’s ordering pickup or shopping retailers on the app. There are additionally some fascinating verticals that we wish to experiment with and discover over the subsequent couple of years.
One different dimension that can also be actually fascinating for us is turning into a extra really international firm. We launched in Australia and Canada a few years in the past, and in Japan and Germany this yr. So we have now our sights set on persevering with to broaden our geographic footprint.
You and a lot of different Asian American enterprise leaders signed an open letter just a few months in the past condemning the latest spate of anti-Asian racism and violence. Are you able to share any ideas about this era of heightened anti-Asian animosity?
I distinctly keep in mind watching a clip of president Biden calling out the wave of racism towards Asian Individuals, which was fascinating to me as a result of, rising up on this nation, I don’t recall a earlier occasion of a president particularly talking concerning the Asian American neighborhood. So, I assumed the truth that we have been being acknowledged was an indication of progress. On the identical time, I believe there’s extra work to be accomplished. And as enterprise leaders from the Asian American neighborhood, I believe we have now a duty to unfold consciousness about and condemn hate concentrating on our neighborhood.
I’m an immigrant, your dad and mom are immigrants, you’re a baby of immigrants. We’re all comparatively new Individuals. What do you like about America?
One factor that I’ve come to understand, particularly over the previous few years, is how America protects the concept of individualism and creating your personal livelihood. As a son of immigrants, I recognize that I’ve been in a position to chase my dream of entrepreneurship and see it flourish. I believe the pursuit of happiness and freedom of alternative are very American beliefs. And the possibility to dream and make these desires a actuality may be very particular and what I like about this nation.
We began with speaking about your loved ones. Why don’t we finish there as effectively. What position did your loved ones play as you went by means of this loopy journey?
They have been very supportive all through all of it. They’re at all times in my nook and that is been essential to me staying grounded. As a founder, it could possibly generally really feel just like the world’s crashing down on you. I’m grateful that I had my household there to assist me by means of all of the highs and lows.
What classes or values have your dad and mom handed all the way down to you that you just suppose have been most important to your success?
My dad and mom taught me a sort of braveness — that it was attainable for me to do nice issues. Taking step one of beginning an organization is often the toughest step for lots of people. However I at all times felt prefer it was one thing that I needed to do and felt like I might do. And I believe that not being afraid to take leaps of religion and placing myself in uncomfortable positions — that got here from my dad and mom. I’m grateful to them for that, too, as a result of being outdoors of your consolation zone is usually while you develop probably the most.
Thanks, Andy, I beloved studying extra about you. And thanks for constructing DoorDash. It’s how I get fed each day!