Tony Xu Outlines DoorDash's Strategic Push in Autonomous Delivery Technologies at Fortune Event

Tony Xu, the co-founder and CEO of DoorDash, candidly addressed the formidable challenges his company faces as it endeavors to advance autonomous delivery technologies. Speaking at the Fortune Brainstorm Tech conference in Park City, Utah, Xu described the process as a "long journey" fraught with "lots of pain and suffering." Since around 2017, DoorDash has been invested in developing autonomy and robotics technology, essential areas for the company’s long-term strategy.

Xu likened the journey to embarking on a new sport that encompasses multiple subdomains, including hardware production, software creation, and optimizing the delivery network. These multifaceted competencies are crucial for the large-scale implementation of autonomous technologies. Xu emphasized that it is uncommon for a single company to excel across all these domains simultaneously. However, he remains optimistic about DoorDash’s potential to achieve this, noting that the company is still in the nascent stages of developing these capabilities.

DoorDash executes a multi-pronged strategy towards autonomy by collaborating with companies like Coco Robotics for urban robot deliveries in cities like Los Angeles and Chicago while conducting drone delivery tests in Australia with Alphabet's subsidiary, Wing. Furthermore, DoorDash is making headway with its internal R&D unit, "DoorDash Labs," which focuses on creating proprietary delivery robots.

Xu acknowledged that the substantial investments made in autonomous technologies over the past eight years are beginning to yield initial commercial benefits, marking the early phases of commercial success. Although the implementations of these technologies are still largely undergoing testing, the potential for drone deliveries in particular has seen progress. Xu mentioned active drone deliveries in Australia and the acquisition of U.S. permits for trials in select cities, while cautioning there is no definitive timeline for broader U.S. operations.

Despite these advancements, DoorDash has not yet established formal autonomous commercial operations in the U.S., with Xu reiterating that much of the work remains in the testing phase. He conveyed confidence in the company's direction, suggesting that as the team continues to refine and develop, operational timelines will become clearer.

In a context beyond technical development, Xu also engaged in discussions about mergers and acquisitions during the conference. He highlighted the nuanced complexities of successful M&A endeavors, citing the importance of aligning corporate values with partners such as Wolt and navigating the intricacies of incorporating new entities like SevenRooms and Symbiosys into the DoorDash ecosystem.

In conclusion, the pursuit of autonomous delivery technologies at DoorDash illustrates a long-term strategy filled with hurdles and learning opportunities. While the technology promises to redefine delivery logistics, Xu remains focused on the intricate details necessary for execution, all while fostering continued innovation and strategic growth within the company.