Succeeding with any startup is hard. Succeeding with a marketplace startup is even harder because incumbents have giant advantages. So how on earth did DoorDash succeed with a marketplace startup 14 years after the first incumbents launched?
The most common answer you’ll hear is a combination of strategy and execution: DoorDash focused on suburbs and lower-tier cities to sidestep the advantages of incumbents. And then they out-executed all of them, shipping and experimenting faster than any competitor.
But those stories are only symptoms of an incredibly talented team. Great strategies come from great people. Fast execution only happens in functioning teams of high-performers. And it’s not just me saying this: CEO Tony Xu considers recruiting one of his superpowers.
That’s why we dove into how DoorDash built its incredible team. Here’s what we learned:
Many startup founders believe their dream hire is someone with years of experience at FAANG companies. The thinking goes something like this: Big Tech has super high bars for hiring and stringent interview processes. If anyone passes the bar there, they’ll crush it at a startup.
But working at Big Tech is different from working at a startup. At Google, you might be the product manager for Google Maps reviews for Eastern Europe. There are layers upon layers above you and a mountain of data so big you’ll never sift through it all. You know exactly what to work on and your role only changes after years.
At a startup, you usually have much more ownership and responsibility. Your role might change overnight. Data is scant. That’s why Tony Xu believes in hiring “general athletes”.
By this he means people who might not have a ton of experience, but who have characteristics that set them up for success at growing the company.
Basically, people who can operate in this early DoorDash office:
What you can implement
To find the people who are likely to succeed at DoorDash, Xu and his team defined a set of attributes they’ve found lead to good performance. These are independent of role-specific skills and more about the personality that helps people crush it in their jobs.
Here’s what DoorDash defines as the Attributes of Excellence:
What you can implement
One of the saddest things is when a scrappy startup becomes a sclerotic corporation. Those who drove early growth move on. Bureaucrats thrive. New launches become sparse. People spend more and more of their time in meetings.
Nobody ever intends to do this. But it happens when the wrong people end up in a culture. As Tony Xu put it: "The first 10 people will help you recruit the next 10, and the next 50 after that, and that's really how your culture can continuously grow."
Those first 10 decide which next 10 will feel drawn to your company. If your culture is scrappy, action-biased and growth-focused, that’s who you’ll attract. If it’s slow, corporate and bureaucratic, that’s who you’ll attract.
What you can implement
This one isn’t for everybody. But on the 20 Minute VC podcast, Tony Xu recounted that he once gave candidates $20 and one workday to acquire 100 new customers.
Sure, this is an extreme example of a hiring process and probably won’t work for all company stages and candidates. But it’s a great way to test how scrappy and ingenuous a candidate really is.
And you don’t need to be that extreme. Many companies now do work trials as part of their interview process. Instead of doing case interviews or coding tests, they pay the candidate to work on a real task that showcases how they handle things.
This will show you much faster what it’s like to work with the person than any standardized test.
What you can implement
DoorDash has close to $70 billion in market cap, employs over 6000 people full-time and has more than 1 million delivery drivers. This is in large part because they’ve built a team that can execute better than their competitors could.
They did that by focusing on building a culture that rewards excellence and continues to attract excellent people—and by figuring out how to spot those excellent people early.
Apply to join Paraform today!