Tobi Lütke on Shopify and Starting Small with Guy Raz | How I Built This | NPR | Summary and Q&A

Summary

In this video, Guy Raz interviews Toby Lukey, the CEO of Shopify, and discusses how the company is adapting to the COVID-19 pandemic. They also explore the current trends in e-commerce and the opportunities that entrepreneurs may have during this time.

Questions & Answers

Q: How has the current situation changed the way people are working at Shopify?

People at Shopify, like in many other technology companies, are now working remotely. They are using tools like Slack and Google Meet for communication and meetings. However, there is a sense of missing the camaraderie and close proximity that comes from working together in an office.

Q: How has the current crisis affected the e-commerce industry?

The current crisis has accelerated the digitalization of businesses. Many companies that never imagined selling directly online have now started doing so. Traditional businesses with physical stores have realized the importance of having an online presence. As a result, Shopify has seen an increase in the number of people signing up for their platform and launching online stores.

Q: Can you give examples of new trends in the types of stores people are launching?

During this time, people have been launching various types of stores. One interesting trend is the creation of masks and other protective gear. Some sneaker factories have started producing masks, and people are buying decorative tapestries to use as backdrops for video conferencing. Additionally, there has been a strong community effort to bring local businesses online, enabling them to offer curbside pickup and deliveries in the neighborhood.

Q: Is now a good time to launch a product or service?

Yes, now is a good time to launch a product or service, especially if it fits into the emerging trends and needs of the current situation. There is still a demand for products, but the way people spend their money has shifted more towards online and essential items. This creates opportunities for entrepreneurs to bring new options to the market and cater to the changing needs of consumers.

Q: How has the current situation affected Shopify's operations and culture?

The current situation has caused a shift in the way Shopify operates and communicates. Office-centricity is changing, and there is a need to find new ways to work together digitally. The culture is evolving as well, and adaptability is seen as an important trait. The company is learning to reproduce the situations and interactions that were valued before through digital means, such as video discussions. The way of leading as a CEO has also changed, with increased communication and transparency becoming essential.

Q: How does Shopify address concerns about certain websites selling products that may promote racism or other negative behaviors?

Shopify has an acceptable use policy that every store must comply with. If anyone notices a site violating this policy, they can submit it for review. Shopify takes these concerns seriously and has automated systems in place to monitor and address any violations.

Q: Does Shopify have plans to allow stores to run on local hosts for debugging and testing purposes?

Currently, there are no plans to allow stores to run on local hosts. However, Shopify is continuously working to improve development tools and make them more efficient.

Q: Are there any plans for Shopify to get involved in package delivery to address delays in deliveries?

Shopify is planning to get more involved in fulfillment networks and building infrastructure for delivery. However, it may take time to scale up this aspect of operations as compared to software development.

Q: How has this crisis changed Toby Lukey's leadership style?

Toby Lukey has learned a lot during this crisis and had to adapt his leadership style. He has increased communication with the team, hosting town hall meetings more frequently. He has also embraced video discussions as a substitute for in-person interactions. The current situation has made him more open-minded and willing to explore new ways of working together.

Q: What opportunities do entrepreneurs have during this time?

Entrepreneurs have opportunities to create and launch products or services that cater to the changing needs and trends. The mix of how people spend their money has shifted, creating opportunities in online sales and essential items. There is also a new understanding of what the world could be like after the crisis, which opens up possibilities for innovation and entrepreneurship.

Takeaways

This video interview with Toby Lukey, CEO of Shopify, provides insights into how Shopify is adapting to the COVID-19 pandemic and the opportunities available for entrepreneurs during this time. The e-commerce industry has seen an acceleration in digitalization, with many traditional businesses now entering the online market. Shopify has experienced an increase in sign-ups and is focusing on supporting small businesses and entrepreneurs. The crisis has also brought changes to the way people work, communicate, and lead. Despite the challenges, there are still opportunities for entrepreneurs to launch products or services that fit the current trends and needs. Overall, the ability to adapt and innovate is crucial in these uncertain times.