40 Years of Stanford Research Found That People With This One Quality Are More Likely to Succeed: How Did DoorDash Win the Food Delivery Wars? - Tech Deep Dive

40 Years of Stanford Research Found That People With This One Quality Are More Likely to Succeed: How Did DoorDash Win the Food Delivery Wars? - Tech Deep Dive

Success in life and business often comes down to one key quality: the ability to delay gratification. This concept was famously demonstrated in the Marshmallow Experiment conducted at Stanford University in 1972. The experiment involved children being placed in a room with a marshmallow and told that if they could wait to eat it, they would receive a second marshmallow. The study found that the children who were able to delay gratification and wait for the second marshmallow went on to have higher SAT scores, lower levels of substance abuse, lower likelihood of obesity, better responses to stress, and better social skills. These findings proved that delayed gratification was critical for success in life.

But how do individuals develop this important trait? Is it something that some people are naturally born with, or can it be learned? The answer lies in the environment and experiences that surround a person. The Marshmallow Experiment revealed that the children who were in a reliable environment, where promises were consistently kept, were more likely to delay gratification. Their brains registered that waiting for gratification was worth it and that they had the capability to wait. On the other hand, children in an unreliable environment, where promises were not consistently kept, were less likely to delay gratification.

The impact of the environment on delayed gratification was almost instantaneous. Just a few minutes of reliable or unreliable experiences were enough to push the actions of each child in one direction or another. This shows that even if someone doesn't feel naturally inclined to delay gratification, they can train themselves to become better at it by making small improvements. By promising something small and consistently delivering on it, individuals can rewire their brains to recognize that waiting is worth it and that they have the capability to wait.

This concept of delayed gratification and self-control is not only applicable to personal success but also to business success. DoorDash, a food delivery service, exemplifies this idea. The founders of DoorDash, Evan Moore, Tony Xu, Stanley Tang, and Andy Fang, recognized an opportunity in the market. They discovered that 85% of restaurants in America did not offer delivery services. This insight led them to create a company that would fill this gap in the market.

DoorDash focused on providing delivery services to restaurants that did not already have a pre-existing delivery offering. They targeted suburban communities and even serviced chains. By doing so, DoorDash quickly grew and brought restaurants and areas that were not previously delivered online. They operated at the lowest level of detail, analyzing each step of the delivery process to identify and solve problems. This approach allowed them to build a moat around their operations and engineering functions, leading to strong unit economics.

One of DoorDash's key strategies was to develop a subscription membership called DashPass. This membership program became their secret weapon, attracting 5 million active subscribers by the time of their IPO. This subscription business brought in $600 million per year and played a crucial role during the pandemic when Americans flooded suburbs, where DoorDash specialized. The company was able to grow rapidly and support restaurants through the challenging times.

DoorDash's leadership, including individuals from eBay and Uber, focused on operating at the lowest level of detail and seeking truth through data and insights. They constantly asked themselves, "How can we organize to maximize growth?" This mindset led to the development of products like DoorDash Storefront, which allows businesses to create their own online stores and integrate them into their existing systems.

While DoorDash's success in the food delivery industry is undeniable, it hasn't been without controversy. The listing of restaurants without their consent has become a standard practice in the industry, and DoorDash has faced accusations of engaging in this behavior. However, the company's focus on growth and maximizing its delivery infrastructure has positioned it as one of the top players in the industry.

In conclusion, delayed gratification is a crucial quality for both personal and business success. The ability to delay gratification and choose the pain of discipline over the ease of distraction is what sets successful individuals and companies apart. If you want to improve your own ability to delay gratification, start by making small promises to yourself and consistently delivering on them. Train your brain to recognize that waiting is worth it and that you have the capability to wait. Additionally, for businesses, focusing on operating at the lowest level of detail, seeking truth through data, and identifying opportunities in the market can lead to significant growth and success.