Kristina Roberts
Tony Xu, the CEO of DoorDash, has turned his small food delivery startup into a giant in the industry, now worth almost $90 billion. What started as a simple idea on the campus of Stanford University in 2013 has grown into a company that is changing how people order food. Over the years, DoorDash has faced tough competition, but under Xu’s leadership, it has managed to stay ahead by making smart moves, including buying other companies to expand its reach. Recently, DoorDash made two big purchases—London-based Deliveroo for $3.9 billion and SevenRooms, a restaurant booking platform, for $1.2 billion. These deals show that Xu is serious about making DoorDash a leader not just in the US but around the world.
One of the key moments in DoorDash’s journey came during the Covid-19 pandemic. Restaurants were struggling to stay open, and many were on the verge of shutting down. Instead of just focusing on profits, Xu decided to reduce the fees DoorDash charged restaurants. This was a risky move, especially since the company was preparing to go public. Keith Yandell, DoorDash’s Chief Business Officer, was concerned about how this would affect their finances. But Xu believed that if restaurants didn’t survive, DoorDash wouldn’t either. “If restaurants don’t thrive, we cannot,” Yandell recalled Xu saying. “We need to take a leadership position.” The company ended up losing over $100 million in fees, but this decision helped many small businesses stay afloat during a difficult time.
Since its early days, DoorDash has always been focused on growth. In 2019, the company bought Caviar, another food delivery service, for $410 million. A couple of years later, it made an even bigger move by purchasing Wolt, an international delivery platform, for $8.1 billion. These acquisitions helped DoorDash expand its services and reach more customers. Now, with the recent deals for Deliveroo and SevenRooms, the company is continuing its strategy of buying competitors to strengthen its position in the market.
The food delivery industry is highly competitive, with companies like Uber Eats and Grubhub fighting for customers. Xu knows that to stay on top, DoorDash must keep innovating. “What we’ve delivered for a customer yesterday probably isn’t good enough for what we will deliver for them today,” he said in a recent interview. This mindset has driven DoorDash to constantly improve its services, whether by adding new features, expanding to new cities, or making deliveries faster.
To support its growth, DoorDash recently raised $2.5 billion through convertible debt. This money could be used for more acquisitions in the future. The company has always been careful about which businesses it buys, making sure each deal brings real value to customers. “We’re very picky, very patient, and conscious that, for most companies, deals don’t work out in hindsight,” DoorDash said in a statement. “When we see an opportunity that brings value to customers, expands our potential to empower local economies around the world, and has a path to strong long-term returns on capital, we tend to push our chips in.”
Tony Xu’s leadership has been a big part of DoorDash’s success. Those who have worked with him say his personal values have shaped the company’s culture. “His characteristics became the company’s values,” said an early investor in DoorDash. Xu’s focus on helping restaurants, improving customer experience, and making smart business decisions has helped DoorDash grow from a small startup into a global leader in food delivery.
Looking ahead, DoorDash shows no signs of slowing down. With its recent purchases and plans for further expansion, the company is set to play an even bigger role in how people order food. Whether through new technology, better service, or more acquisitions, Tony Xu is determined to keep DoorDash at the top of the industry. For customers, this means more choices, faster deliveries, and better experiences when ordering their favorite meals. For restaurants, it means more opportunities to reach hungry customers. And for DoorDash, it means continuing to build a business that can thrive in a competitive and ever-changing market.
The story of DoorDash is not just about food delivery—it’s about how a good idea, strong leadership, and smart decisions can turn a small company into a major player. Tony Xu’s vision has guided DoorDash through challenges and opportunities, proving that with the right strategy, even the toughest industries can be conquered. As the company grows, one thing is clear: DoorDash is here to stay, and it will keep finding new ways to make food delivery better for everyone.
