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Tony Xu

03/26/25

@ Y Combinator

We realized that the demand for delivery services was stronger outside city centers, leading us to focus on suburban areas rather than competing in densely populated urban markets.

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DoorDash CEO: Customer Obsession, Surviving Startup Death & Creating A New Market

@ Y Combinator

DoorDash CEO: Customer Obsession, Surviving Startup Death & Creating A New Market

03/26/25

Related Takeaways

Tony Xu

03/26/25

@ Y Combinator

Listening to customer needs was crucial in shaping our strategy, as we found that suburban areas had higher demand and better unit economics for delivery services.

Tony Xu

12/10/20

@ Y Combinator

Unlike our peers who operate in cities, we successfully deliver in the suburbs of Palo Alto, an area that is more spread out and challenging.

Travis Kalanick

10/25/13

@ Y Combinator

As we expanded to other cities, we found that our operations became more efficient and the technology improved, leading to better service.

Tony Xu

03/26/25

@ Y Combinator

As we studied the delivery needs of various merchants, we realized there was a broader demand beyond just one type of business.

Aadit Palicha

04/18/25

@ Y Combinator

We realized that we had to be at the customer's doorstep to improve retention, so we started doing initial deliveries ourselves to understand the customer experience better.

Reham Fagiri

12/15/18

@ Y Combinator

We conducted market research by testing Craigslist listings with delivery options, which showed a significant interest in a more convenient solution.

Tony Xu

12/10/20

@ Y Combinator

We're building a delivery service that operates on demand, rather than overnight or same-day, similar to what FedEx would look like today.

Tony Xu

03/26/25

@ Y Combinator

During our time at Y Combinator, we focused on understanding whether consumers would pay for delivery services and if restaurants would be willing to partner with us.

Vidit Aatrey

05/22/19

@ Y Combinator

In 2015, we initially focused on hyperlocal fashion, but learned that fulfillment is crucial, leading us to pivot towards a marketplace model that better serves small shop owners.