Tony Xu believes in “Outside-in thinking”.
Not just Xu — Jeff Bezos, Steve Jobs, and Elon Musk swear by it too.
Here's what it really means, why it works, and how DoorDash used it to dominate food delivery:
Not just Xu — Jeff Bezos, Steve Jobs, and Elon Musk swear by it too.
Here's what it really means, why it works, and how DoorDash used it to dominate food delivery:
Most founders ask customers: "What problems do you have?"
Tony did something different.
He wanted a complete understanding of Doordash and his customer's journey. The full picture.
He achieved this.
That's why it's worth $75B today and why the co-founder of Y Comb said this:
Tony did something different.
He wanted a complete understanding of Doordash and his customer's journey. The full picture.
He achieved this.
That's why it's worth $75B today and why the co-founder of Y Comb said this:
https://twitter.com/183749519/status/1560007772506247168
He was customer obsessed. It led him to the big idea.
A macaroon shop owner showed them a thick booklet of delivery orders she'd turned down.
Instead of just noting it, they pulled on that thread until they discovered a massive untapped market.
A macaroon shop owner showed them a thick booklet of delivery orders she'd turned down.
Instead of just noting it, they pulled on that thread until they discovered a massive untapped market.
True customer obsession is physical, not theoretical.
Tony and his co-founders did EVERY delivery themselves for the first 2 years.
Even today, all DoorDash employees (including Tony) do deliveries annually.
They call it "getting in the weeds."
Tony and his co-founders did EVERY delivery themselves for the first 2 years.
Even today, all DoorDash employees (including Tony) do deliveries annually.
They call it "getting in the weeds."
Their first website showed real customer obsession in action:
A static HTML page with 8 PDF menus and a Google Voice number.
When you called, it rang ALL FOUR founders' phones.
Whoever picked up first handled your order personally.
A static HTML page with 8 PDF menus and a Google Voice number.
When you called, it rang ALL FOUR founders' phones.
Whoever picked up first handled your order personally.
Customer obsession was put to the ultimate test in 2013.
After a Stanford football game, every delivery was 90+ minutes late.
Nearly broke, they still refunded EVERYONE (40% of their bank account).
Then baked cookies and delivered them at 5am to apologize.
After a Stanford football game, every delivery was 90+ minutes late.
Nearly broke, they still refunded EVERYONE (40% of their bank account).
Then baked cookies and delivered them at 5am to apologize.
That near-death experience crystallized their philosophy:
"Customer obsessed, not competitor focused."
Tony believes this wasn't a happy accident:
Companies that survive crises often do so by defaulting to doing the right thing for customers.
"Customer obsessed, not competitor focused."
Tony believes this wasn't a happy accident:
Companies that survive crises often do so by defaulting to doing the right thing for customers.
Customer obsession led them to a counterintuitive strategy:
While competitors battled for NYC and SF, Tony focused on suburbs.
Everyone said dense cities were needed for delivery economics.
But by actually doing deliveries, he realized suburban customers needed them MORE.
While competitors battled for NYC and SF, Tony focused on suburbs.
Everyone said dense cities were needed for delivery economics.
But by actually doing deliveries, he realized suburban customers needed them MORE.
The insight was simple but profound:
In NYC, hundreds of restaurants are steps away.
In suburbs, you might walk miles before finding one.
Customer obsession revealed what competitor focus couldn't: suburbs had higher order values, easier parking, and simpler deliveries.
In NYC, hundreds of restaurants are steps away.
In suburbs, you might walk miles before finding one.
Customer obsession revealed what competitor focus couldn't: suburbs had higher order values, easier parking, and simpler deliveries.
Even with fantastic growth, Tony couldn't raise money for years.
For THREE CONSECUTIVE YEARS (2016-2018), he received hundreds of rejections.
But customer obsession kept them focused when competitors were chasing vanity metrics.
For THREE CONSECUTIVE YEARS (2016-2018), he received hundreds of rejections.
But customer obsession kept them focused when competitors were chasing vanity metrics.
During COVID, customer obsession led to decisions that shocked the industry:
1. TV ads promoting ALL delivery services (including competitors)
2. Cutting commissions by 50% ($100M+ cost)
3. Free delivery for hospital workers
While others optimized for survival, they optimized for customers.
1. TV ads promoting ALL delivery services (including competitors)
2. Cutting commissions by 50% ($100M+ cost)
3. Free delivery for hospital workers
While others optimized for survival, they optimized for customers.
Why make decisions that hurt short-term profits?
"Are we just here to build a company that ends in 2020 or with an IPO?
Or to build something that will empower every physical business for decades?"
Customer obsession made the long-term choice obvious.
"Are we just here to build a company that ends in 2020 or with an IPO?
Or to build something that will empower every physical business for decades?"
Customer obsession made the long-term choice obvious.
The results speak for themselves:
DoorDash now commands 65% of US food delivery.
They beat Uber Eats and GrubHub despite having less funding.
Customer retention and frequency became their moat – exactly what customer obsession builds.
DoorDash now commands 65% of US food delivery.
They beat Uber Eats and GrubHub despite having less funding.
Customer retention and frequency became their moat – exactly what customer obsession builds.
Tony's advice for entrepreneurs:
"There's no better way to be the expert than just to do the work."
He had zero logistics background, but by feeling customer pain directly, he became the expert.
Customer obsession isn't just a strategy. It's daily practice.
"There's no better way to be the expert than just to do the work."
He had zero logistics background, but by feeling customer pain directly, he became the expert.
Customer obsession isn't just a strategy. It's daily practice.
Building an audience on X isn't easy. Most creators focus on hacks instead of consistent value.
But as Tony Xu showed, obsessing over what your audience actually needs is the real secret to growth.
Need help figuring out what to post? I've got you.
But as Tony Xu showed, obsessing over what your audience actually needs is the real secret to growth.
Need help figuring out what to post? I've got you.
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In 5+ years, it's become the ultimate creator toolkit for personal brands on 𝕏.
We've made it easy for you to consistently schedule content and predictably grow on 𝕏.
Interested? 7-day free trial @Hypefury
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