The Start:

Born in Nanjing, China, Tony immigrated to the United States with his family when he was five years old. His parents, both academics in China, had to start over in America; his mother worked in a restaurant and his father took various odd jobs to support the family.

Tony's upbringing in an immigrant household taught him the value of grit and determination.

He attended the University of California, Berkeley, where he earned a degree in Industrial Engineering and Operations Research, followed by an MBA from the Stanford Graduate School of Business.

His diverse educational background and firsthand experience with the struggles of small business owners set the foundation for his entrepreneurial journey.

The Problem:

Tony Xu, along with his co-founders Andy Fang and Stanley Tang, observed the challenges faced by local businesses in delivering their products to customers efficiently.

While studying at Stanford, they realized that many small restaurants lacked the resources and infrastructure to offer delivery services, putting them at a disadvantage compared to larger chains.

The team saw an opportunity to create a technology-driven solution that would enable these businesses to compete in the growing on-demand economy.

This insight led to the creation of DoorDash, a platform designed to empower local businesses by providing them with a reliable and scalable delivery service, thus bridging the gap between merchants and consumers.

Getting their first customers:

Tony became a driver for various platforms while simultaneously interviewing around 150-200 Small Business Owners to gain a thorough understanding of the market.

They launched their first MVP within a few hours. Initially, their website lacked an online booking system, so customers had to call a phone number listed on the site, which was actually one of the founder's mobile phones.

To target people in Palo Alto searching for food delivery, they named their website PaloAltoDelivery.com, hoping this would help it rank well on Google for searches like "Palo Alto Delivery."

This strategy proved successful, as they received their first Thai food order call just half an hour after launching the page.

For the first 200 orders, the founders managed everything themselves. They didn't hire any dashers and only delivered during two specific time slots: from 12:00 pm to 1:30 pm and from 5:30 pm to 8:00 pm, fitting these deliveries around their class schedules.

To boost their presence on the Stanford campus, Tony sent an email introducing PaloAltoDelivery to his dorms. This, combined with organic reach from Google searches, allowed them to fulfill their first 200 orders without needing to hire a single dasher.

Digging this? Get more actionable strategies like these straight in your inbox for free