American dream lived: The man behind DoorDash: Successful DoorDash IPO makes co-founder Xu a billionaire | message
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• Immigration background for inspiration
• Start with local restaurant deliveries
• Tony Xun becomes a billionaire
Tony Xu is the co-founder and CEO of DoorDash. The company’s successful IPO made the 36-year-old a billionaire. While a million “Dasher” deliver the food for their employer today, the founders, who were still studying at the time, took on this job themselves at the beginning.
Tony Xu – starts washing dishes in a Chinese restaurant
In 1989, when Xu Xun was just five years old, his family immigrated to the United States from China. His mother, a doctor in China, did not have her medical license recognized. Both parents took jobs in a local restaurant. The father also studied aerospace engineering and applied mathematics in Illinois. Money has always been tight, told the new billionaire, who officially changed his name to Tony Xu, before the IPO to CNBC.
Tony Xu started working early on in the Chinese restaurant where his parents were employed by helping with the washing up. When he was nine years old, he and a friend made some extra money with a creative lawn mowing concept. This early entrepreneurial experience seemed to have reinforced the young Xu’s ambitions. The US broadcaster reports the DoorDash CEO from 2015: “We mowed lawns and asked for more designs, like a checkered lawn,” he describes the idea behind it. “I’ve learned that you can do more than you think you can. I could barely reach the lawnmower handle!”
About the establishment and use of DoorDash
Education was a top priority for his parents, Xu told Jim Cramer. He was able to obtain a degree in industrial engineering from the universities of California and Berkeley, as well as an MBA from Stanford University.
Meanwhile, he had professional experience in Silicon Valley while interning at Square and doing business development at RedLaser. During his studies at the Graduate School in Stanford, Xu finally founded an online service with three fellow students that was supposed to simplify ordering from local restaurants. This is how PaloAltoDelivery.com came into being in 2012.
The code for the page should have been created within a day. So it was immediately possible to accept orders – menus were to be seen as PDF from eight different restaurants, writes CNBC. The founding team split into the first hundred deliveries – especially at night because they still attended university during the day. “We told some friends about it. We sent emails to some groups on campus. We sent emails to some dormitory list servers, so we ran the first few orders through the system,” Xu said in 2018 in a conversation with the Los Angeles Times.
The year of change: 2013
The next important step was the entry of Y Combinator, which invested 120,000 US dollars, in 2013. The name of the startup was also changed to DoorDash at this time and new team members were hired. In 2014, DoorDash reportedly raised nearly $ 20 million in venture capital, according to CNBC, when nearly 1,000 restaurants in the Bay Area and Los Angeles were on the list. With the nationwide expansion, investors like Softbank or Sequoia Capital – this resulted in funding totaling around 2.5 billion US dollars. Xu is now CEO of the newcomer to the stock market, which has blossomed into one of the most popular food suppliers. One million “dasher” supply around 18 million customers with their food orders, the company recently announced. In the first three quarters of this year, DoorDash had sales of 1.9 billion US dollars, but the app is not yet profitable.
The American dream: DoorDash makes CEO Tony Xun a billionaire
Much has changed since the beginning during university: DoorDash is listed on Wall Street, Xu works as CEO at the top of the group. His earnings in 2019 are said to have been $ 300,000 base salary. He owns five percent of the DoorDash shares, which were worth 1.6 billion US dollars at the time of the IPO. Thanks to the successful IPO, the former immigrant child Xu went from dishwasher to billionaire.
His immigration background and his parents’ intentions as to why they moved from China to the USA contributed to the establishment of DoorDash: Shortly before the DoorDash share was launched, Xu told CNBC presenter Jim Cramer that his parents had come to this country , “To create a better life for me,” emphasizes the years his mother had to take on multiple jobs before she could get her medical degree and start her own institution. On the other hand, DoorDash is now there with its food delivery app “to enable those who, like my mother, have come here with a dream to make it on their own,” wrote Xu in a letter with the filing of the IPO prospectus with the SEC .
Finanzen.net editorial team
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Image Sources: Tibrina Hobson / Getty Images for Los Angeles Times Food Bowl, Steve Jennings / Freer Fotograf / Getty Images