Sunday 21 November 2021
Interview with Doordash boss
“The German market is undersupplied”
Lieferando, Gorillas, Flink, Wolt and Co. The list of food delivery services in Germany is now long. With Doordash there is now competition from the USA. In an interview, founder Andy Fang explains why the German market needs another provider.
In the first year of Doordash, you made the deliveries yourself. When was the last time you were a courier driver?
Andy Fang: That was yesterday evening, in Stuttgart. I took a few orders there with the e-bike. Going out and delivering yourself is a really good experience to understand all the nuances of a successful delivery. That’s why it’s an important part of our founding history.
What did you learn about German customers in the process?
Above all, I got to know the hills in Stuttgart. And I managed to get lost in an apartment block. In essence, however, my main concern is to get to know the logistical processes and to ensure that we manage the couriers correctly and that the customers receive their orders.
Some delivery services struggle with German labor law. In Berlin, the drivers of the start-up Gorillas have been protesting against poor working conditions for months. What is the employment relationship like at Doordash?
We hire our drivers through an agency called Jobandtalent. We pay attention to fair wages for good work. We also provide safety training and appropriate equipment, such as gloves, winter jackets, masks and disinfectants.
During your shift in Stuttgart, you must have met one or the other Lieferando driver. With around half a dozen active delivery startups, the bike paths in the German metropolises have become pretty crowded. Isn’t Doordash late?
We have the feeling that the German market is undersupplied. That is precisely why we find it so exciting here. 80 percent of the restaurants in Germany have never been listed on a delivery platform. That shows that the market is still in the early stages. There are many entrepreneurs looking to sell more online – Doordash can be an opportunity for them.
However, the industry is not that young either. The Just Eat Takeaway subsidiary Lieferando has a lead of more than ten years in this country. How are you going to beat this competition?
We are not interested in competition. We want to be focused on customers and not on competitors. But what I can say: Even when we came onto the market in the USA, there were players who had been around for almost ten years. And the reality in Germany – regardless of what has happened in the past – is that more than four out of five restaurants don’t offer online delivery today. This is a very big opportunity for Doordash.
The delivery providers’ apps and restaurant selection often look very similar. How do you want to set yourself apart?
Our product strategy is to give companies the tools they need to increase their sales. In addition to the app, we are starting with storefronts in Germany, for example. This is an online ordering system that enables the customers of a restaurant to place pick-up and delivery orders directly at the store. I believe this is a compelling value proposition.
In the app, customers can order food to be delivered to them at home. Which products will you deliver in the future?
In Stuttgart we are already working with local flower shops and beer sellers. As time goes on, we’ll look at other segments as well. The food sector and quick commerce are very interesting for us, as you can see from our participation in the German food delivery service Flink.
Doordash holds around 15 percent of Flink. A strategic partnership seems obvious. What could it look like?
I can’t say too much about that because the terms of the deal are not public. We are very impressed with what the Flink team has achieved so far. Quick Commerce is strongly linked to supporting local retailers – this is what drives us at Doordash too. We are therefore confident that there can be synergies here.
You also had talks with the Berlin delivery startup Gorillas. Why did you choose Flink in the end?
The team simply convinced us. We are closer when it comes to the way we work in the company and our implementation skills.
In addition to the investment in Flink, they recently bought the Finnish delivery service Wolt, which is also active in Germany. Aren’t you competing with your own Doordash launch in Germany?
The authorities have yet to approve the deal, so I can’t say much about that. Just this much: we have a very similar mission. Doordash wants to promote the local economy. And Wolt’s mission is to make cities more livable. We tend to think in the longer term, in a period of at least a decade.
What growth goals have you set yourself for Germany?
We are initially focusing on a successful start in Stuttgart. What we learn will help us choose more cities.
So is the experiment in Stuttgart to be understood in a certain way as a brand test: Wolt versus Doordash?
It’s not about testing the brand itself, it’s about seeing how we can reach more customers and more retailers. I think we’re just scratching the surface.
Hannah Schwär spoke to Andy Fang
The interview is at first Capital appeared