Latest Andy Fang News
Jul 4, 2023
DEE-ANN DURBIN and TERRY CHEAAssociated Press Jul 4, 2023 × On a recent afternoon in San Francisco, a DoorDash driver was circling the neighborhood — first in his car, then on foot — trying to find the restaurant where he needed to pick up two orders. Finally, he Googled the location and realized DoorDash’s app sent him to the wrong address. It’s an … SAN FRANCISCO — On a recent afternoon in San Francisco, a DoorDash driver was circling the neighborhood — first in his car, then on foot — trying to find the restaurant where he needed to pick up two orders. Finally, he Googled the location and realized DoorDash’s app sent him to the wrong address. Andy Fang, DoorDash’s co-founder and chief technology officer, delivers food orders to customers June 15 in downtown San Francisco. Terry Chea, Associated Press It’s an error he vowed to fix, and he probably will. Because that worker is Andy Fang, DoorDash’s chief technology officer and one of the company’s three co-founders. “If it happens with one restaurant, it might actually be happening with a lot of other restaurants as well,” Fang said after he retrieved the orders and settled back into his car. “If we can see why that happened, maybe we can fix other issues, too.” Fang is one of a growing number of executives who occasionally do the hourly work that makes their companies hum. Starbucks’ new CEO, Laxman Narasimhan, is a trained barista and puts in a half-day of work at a store each month. Uber CEO Dara Khosrowshahi and Lyft CEO David Risher occasionally shuttle passengers. Air New Zealand CEO Greg Foran has been spotted serving drinks and snacks on flights. People are also reading… Amazon recently re-launched a program called the Associate Experience Week, which encourages employees to shadow operations workers for a week to gain a better understanding of their job. The program is mandatory for some managers. A1 Garage Door Service, which operates in 16 states, also encourages job-shadowing and requires all employees to learn skills outside of their immediate responsibilities. A1 CEO Tommy Mello says the policy promotes empathy and collaboration. But few companies have a program as robust as WeDash, which requires thousands of salaried DoorDash employees in the U.S., Canada and Australia to complete at least four deliveries per year. Employees are strongly encouraged to make deliveries monthly. They can use work time to complete those shifts, and they keep any money they make. “We just want to make sure that people who are working here, who are supporting our audiences, are understanding what people are going through,” Fang told The Associated Press. Andy Fang, DoorDash’s co-founder and chief technology officer, makes a delivery to a customer June 15 in San Francisco. Terry Chea, Associated Press When they started DoorDash a decade ago, while they were students at Stanford, Fang and the company’s other two co-founders — CEO Tony Xu and Chief Product Officer Stanley Tang — made all of the deliveries themselves. “We had to. There was nobody else to do them,” Fang said. “But what we quickly found out was that by doing these deliveries ourselves, we learned a ton of insights into what it actually took to get these deliveries fulfilled.” The company started WeDash in 2015 to make sure every employee was getting those insights. Fang said there are some exceptions; if an employee can’t drive, for example, they might visit merchants or work in the call center. DoorDash has grown exponentially since then. In 2022, more than 6 million DoorDash drivers — all independent contractors — fulfilled 1.7 billion orders worldwide. DoorDash has expanded beyond restaurant delivery into convenience stores, groceries, pet stores and pharmacies. Fang, who makes deliveries for at least an hour each month — sometimes with Xu and Tang in tow — says he has made real changes to DoorDash’s app based on his experiences. When he was on the East Coast recently, he set a time to make deliveries when he returned to California. But when he got home, he realized the time he set was off by three hours because the app assumed he was still on the East Coast. He got that bug fixed. Another new feature arose from employee feedback in WeDash. The feature, Dash Along the Way, lets drivers specify where they want to start making deliveries and then assigns them orders that they can complete en route. Fang also experiences drivers’ other frustrations. The wrong address in the DoorDash app cost him time delivering orders from Bonchon, a Korean fried chicken chain. On the afternoon he drove with an AP video journalist, Fang made only $15.50 for 51 minutes of work. DoorDash says that's lower than the $34 per hour that California drivers make on average, including tips. It's also vastly lower than what Fang pulls in as CTO. His annual compensation in 2022 totaled $2.79 million and Forbes pegged his net worth that same year at $1.1 billion, illustrating the gap between those at the top of a company and those at the bottom. DoorDash and others recently pushed back against a new rule introduced in New York City implementing a minimum pay rate for app-based food delivery workers that could nearly triple their average earnings in the coming years. DoorDash said it may pursue legal action. Still, the company is seeking ways to make drivers' earnings more reliable. It recently announced a new Earn By Time mode, which will let drivers earn a guaranteed minimum rate for the time they spend on a delivery, not including tips. Drivers can still opt for an Earn Per Offer mode, which is how they have always been paid. Fang said he knows there are limits to how much he can understand the day-to-day work of the company's drivers, which is why he also seeks feedback from a council of drivers and from other employees. Denise Rousseau, a professor of organizational behavior at Carnegie Mellon University, said there is a lot of value in asking workers to do other jobs within their company. Having senior leaders participate, as DoorDash does, sends an even stronger message. “If you spend your own time on it, that's not cheap talk anymore,” she said. “You are trying to convey, ‘This is the focus of our business and we care.’” New York City food app delivery workers will be the first in the country to receive a minimum pay rate. How people ordered meals online in 2022, according to DoorDash How people ordered meals online in 2022, according to DoorDash It seems everyone craves takeout lately—and the numbers prove it. A recent report from online food ordering company DoorDash found a 15% year-over-year growth for same-store pickup orders using their app and an 11% growth for same-store delivery orders. Additionally, 37% of respondents ordered delivery more often than last year, and 41% said the same for picking up an order, according to 2022 survey data. Interest doesn't just stop there: 37% of consumers dined indoors more often than last year, and nearly 1 in 5 decided to dine al fresco more often. Whether eating at a restaurant or taking a meal to go, the message seems clear—diners value the simplicity of not having to cook a meal themselves as life slowly comes back to "normal" after the onset of the pandemic. According to the National Restaurant Association, 62% of adults said they're more likely to order takeout or delivery now compared to before the COVID-19 pandemic. Industry sales are expected to hit $898 billion in 2022, but the industry continues to struggle with the repercussions of food shortages during the pandemic years. Six percent of operators experienced supply delays or shortages of key food or beverage items in 2021, and supply chain challenges have continued through 2022. So how do restaurant trends from last year compare to now? Task Group looked at trends in how people ordered meals online in 2022, according to data from DoorDash and research from industry sources like the National Restaurant Association . rblfmr // Shutterstock People valued a good ordering experience, accurate delivery time, and fast service When ordering takeout, service is just as important for consumers as the convenience of preparing and delivering a meal. A DoorDash report found nearly 3 in 4 consumers chose a delivery method based on the quality of experience, 69% stated the importance of an accurate delivery time, and 69% valued quality customer service. Plus, while customers could call a restaurant to order, nearly all enjoyed using a third-party app that allowed them to save their delivery information for easy checkout. Almost half said they enjoyed the convenience of having their delivery information saved (up 9% from 2021), and 44% said they wanted to be able to re-order their last meal easily. Easy checkout processes were also valued, with 41% stating they enjoyed having their payment information saved to make future orders with a click of a button. buryakphoto // Shutterstock Breakfast saw an increase in popularity Although takeout is popularly seen as an option for lunch and dinner, early risers also sought convenient options to get a meal in the morning. DoorDash found morning orders between 5 a.m. and 10 a.m. saw a threefold increase between 2021 and 2020, as more people considered ordering delivery for breakfast and brunch. Who wouldn't want a cup of coffee quickly delivered to their door? Dragon Images // Shutterstock Consumers don't call to order anymore Thirty-seven percent of consumers said they preferred ordering through a third-party delivery platform—up 10% compared to 2021. Only 18% of consumers preferred calling a restaurant directly, down from 27% last year. Some consumers still ordered from the restaurant—but without picking up the phone. Thirty-eight percent said they preferred to order their delivery from a restaurant's website or app, allowing them to order on a device without calling or using a third-party system. However, the use of a restaurant's website or app has decreased, down 5% from last year. Simone Hogan // Shutterstock People ordered online for convenience—and stayed home The convenience of having food delivered is also beneficial for consumers still worried about possible COVID-19 exposure—29% said they avoided going to restaurants for this reason. Half of consumers said ordering delivery was more convenient than picking up, especially when 2 in 5 customers preferred not to go out. Along with the ease of use and convenience of an app, consumers said familiarity was key to their ordering experience. Nineteen percent of consumers said returning to a third-party app they are familiar with to order food was crucial to making their takeout experience easier. Tada Images // Shutterstock American and Mexican food were most popular DoorDash users had a specific hankering for American and Mexican food. Between January and March 2022, the most popular items ordered on DoorDash included french fries, burritos and burrito bowls, chicken nuggets and sandwiches, hash browns, and cheeseburgers. DoorDash users also craved Japanese, Italian, and Chinese food throughout the beginning of the year. Plus, ordering the main meal wasn't enough: DoorDash noted that consumers increasingly added appetizers, sides, and beverages to their meals. robin gentry // Shutterstock More and more dined in, but takeout orders continued to be prevalent Even though consumers continued going to restaurants, DoorDash's data showed more people preferred ordering takeout or picking up versus indoor dining. Eighty-six percent of consumers said they ordered takeout and pickup as much or even more than last year; 83% said they ordered more delivery. While more than half of adults said they aren't eating at restaurants as often as they desired, according to the National Restaurant Association, the convenience of ordering takeout or delivery from a third-party app seemed to interest consumers looking for an easy way to get good food on the table. This story originally appeared on Task Group and was produced and distributed in partnership with Stacker Studio. Ground Picture // Shutterstock
Andy Fang Investments
Andy Fang has made 1 investments. Their latest investment was in WanderJaunt as part of their Series B on September 18, 2019.
Andy Fang Investments Activity