DoorDash's CEO worried a Taco Bell partnership wouldn't work. Instead, it revealed a truth about food delivery
DoorDash CEO Tony Xu reflects on the company's early skepticism regarding a partnership with Taco Bell. He notes that consumer willingness to pay a premium for delivery convenience has consistently defied initial expectations.
Why it matters
Highlights shifting consumer behaviors in the gig economy and the resilience of the food delivery sector despite rising costs.
DoorDash CEO Tony Xu worried that the added costs of food delivery would scare off Taco Bell customers. Joe Raedle/Getty Images Food delivery has gotten more expensive over the past decade, but people keep ordering. Even DoorDash CEO Tony Xu was skeptical that the extra cost of fast food delivery would work. Customers are paying up for delivery because of the time they save, he said. DoorDash CEO Tony Xu never expected that people would pay as much as they do for food delivery. The delivery service became one of the biggest companies in tech by delivering food, groceries, and other purchases to customers' homes for a premium over in-store ordering. And people continue to spend on food delivery, even as some cut back on groceries and other essentials.
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