The Current Podcast: Episode Summary – "DoorDash’s Toby Espinosa on Helping Local Economies Grow"

Podcast Information:

• Title: The Current Podcast
• Host/Author: The Current
• Description: The Current Podcast returns for another season of insights and inspiration from leaders at the world’s most influential brands. Editors and co-hosts Damian Fowler and Ilyse Liffreing uncover candid stories from these executives on everything from how they landed their roles to moments of redemption to innovations they're excited about and more. New episodes are released every Wednesday.
• Episode Title: DoorDash’s Toby Espinosa on Helping Local Economies Grow
• Release Date: November 6, 2024

Introduction

Hosts Damian Fowler (A) and Ilyse Liffreing (B) welcome listeners to the latest episode of The Current Podcast. They introduce Toby Espinosa (C), the Vice President of DoorDash Ads, who plays a pivotal role in connecting both local and national brands with over 37 million active DoorDash customers each month.

Evolution of DoorDash Over the Decade

Discussion Highlights:

• Company Growth: Toby reflects on DoorDash’s journey since its founding in 2013. Joining in 2015, he has witnessed significant expansion from a single-product, single-market operation to a multi-product, multi-geography powerhouse.

  “We have gone from a one product, one market business to a multiple product, multiple geography business.” (01:22)

• Founding Philosophy: Emphasizing growth, the founders initially focused on helping local businesses flourish rather than just building a logistics or ad network.

  “Hey, how can I help you grow?” (01:22)

• Current Metrics: DoorDash now boasts 37 million monthly active users and over 15 million monthly active subscribers, partnering with approximately 550,000 merchants and maintaining a robust courier network of over 7 million Dasher.

Growth of the Ads Marketplace

Key Insights:

• Consumer Promise: Toby underscores the challenge of maintaining and enhancing the consumer experience—faster, better, and cheaper services are paramount.

  “Building a consumer promise and then making that promise better and better and better every day.” (03:24)

• Initiation of Ad Business: Responding to merchant demand for growth tools, DoorDash launched its ad business approximately five years ago to support merchants in scaling their operations without burdening them financially.

  “Let’s build a product where you do not have to pay us unless you get an order.” (06:00)

• Unique Alignment: DoorDash’s ad team aligns incentives to drive both incremental returns for advertisers and increased volume for the consumer marketplace, a strategy distinct from traditional advertising platforms.

Building the Retail Media Network

Development Strategies:

• Customer-Centric Approach: Focusing on small and medium-sized businesses (SMBs), DoorDash created an economic model that ensures merchants only pay for ads when orders are generated, mitigating financial risks for local businesses.

  “Let’s build a product where you do not have to pay us unless you get an order.” (06:00)

• Supporting Local Expertise: Recognizing that local businesses must excel in numerous areas, DoorDash aims to alleviate the growth burden by handling aspects like marketing and advertising.

• Rapid Growth: This customer-focused methodology has propelled DoorDash to establish one of the fastest-growing retail media networks, particularly servicing an underserved SMB demographic.

Expanding Relationships with National and Local Brands

Strategic Partnerships:

• Balancing National and Local: DoorDash caters to both national brands and local franchisees, ensuring that large brands like McDonald’s can manage their advertising on a national scale while supporting local franchisees.

  “The brand is national, but the spend is still local.” (19:30)

• Innovative Ad Products: Introduction of a unique ad manager that allows seamless purchasing across different levels—national media buyers, district media buyers, and local operators—facilitating cohesive growth strategies.

Partnerships and Collaborations

Notable Collaborations:

• Diverse Partnerships: DoorDash collaborates with a range of partners, including financial giants like Chase and tech leaders like Amazon Canada, to foster local business growth.

  “We are fundamentally a partner oriented culture.” (10:25)

• Consumer-Focused Initiatives: Partnerships are designed to enhance the consumer experience while driving growth for merchants. For instance, integrating Chase credit card benefits into DoorDash’s subscription programs expands user engagement.

  “Everybody that has a Chase credit card has the opportunity to participate in one of the largest local subscription programs in the world.” (10:25)

Advertising Strategies and Seasonal Campaigns

Engagement Tactics:

• Occasion-Based Marketing: DoorDash aligns its advertising efforts with major occasions such as the Super Bowl and Mother's Day to connect deeply with consumers during significant moments.

  “If you are a local owner operator of a wing restaurant in Tulsa, Super Bowl is your Super Bowl.” (13:38)

• Extending into New Categories: Leveraging large-scale events to introduce and normalize DoorDash’s expansion into diverse categories beyond food, such as retail and healthcare.

  “Really doordash is here as an assistant in your life across all of these categories and verticals whenever you need us.” (14:59)

• Memorable Campaigns: DoorDash’s Super Bowl commercials enhance brand visibility and highlight new service offerings, like delivering sneakers, illustrating the platform’s versatility.

Integration with Streaming Services

Synergistic Partnerships:

• Enhancing User Moments: Collaborations with streaming services like Max create harmonious user experiences, combining the joy of delivery with the relaxation of watching favorite shows.

  “Aligning ourselves in this moment of peace, of this moment of just absolute happiness with a streaming service is a very nice moment to be right next to these brands.” (15:56)

Artificial Intelligence and Future Innovations

Technological Advancements:

• AI Integration: Toby envisions AI as a catalyst to further DoorDash’s mission, enhancing efficiencies for merchants, consumers, and Dashers by personalizing experiences and streamlining operations.

  “AI as a technology will only help accelerate our mission of doing that and then unlocking growth for local.” (17:07)

• Looking Ahead to 2025: DoorDash plans to continue simplifying complex advertising processes for merchants, allowing them to focus more on growth without being bogged down by technical complexities.

  “We’re very excited to take on” the challenge of reducing complexity for customers while enhancing the product and engineering platforms. (18:27)

Conclusion

Final Thoughts:

Toby Espinosa provides a comprehensive overview of how DoorDash has evolved into a multifaceted platform that not only delivers food but also empowers local economies through innovative advertising solutions. By aligning partnerships, leveraging technology, and maintaining a customer-centric approach, DoorDash continues to foster growth for both local merchants and national brands.

“The brand is national, but the spend is still local.” (19:30)

Hosts Damian and Ilyse wrap up the episode, emphasizing DoorDash's unique positioning and encouraging listeners to subscribe and engage with The Current Podcast.

Timestamps

• 01:22 – Toby discusses DoorDash’s evolution from a single-product, single-market company to a multi-product, multi-geography enterprise.
• 03:24 – Insights on building the ad marketplace and aligning consumer promises with merchant growth.
• 05:12 – Formation of DoorDash’s retail media network tailored for SMBs.
• 06:00 – Introduction of performance-based ad payment models.
• 07:37 – Expansion of relationships with national brands while supporting local operators.
• 10:25 – Emphasis on DoorDash’s partner-oriented culture and significant collaborations.
• 13:38 – Strategy behind occasion-based marketing campaigns like the Super Bowl.
• 14:59 – Extending DoorDash’s services into new categories through strategic advertising.
• 15:56 – Synergy between DoorDash’s delivery services and streaming platforms.
• 17:07 – Future integration of AI to enhance DoorDash’s mission and growth.
• 18:27 – Upcoming innovations aimed at reducing customer complexity and boosting growth.
• 19:30 – Reiterating the balance between national brand presence and local advertising spend.

Note: This summary is crafted to provide a comprehensive overview of the podcast episode, encapsulating all major discussions, insights, and concluding thoughts shared by Toby Espinosa. It is designed to be informative for both listeners and those who seek to understand the episode's content without tuning in.