From #Stanford to #SiliconValley CEO: How Elle's Digital Tipping Honors Her Housekeeping Mom

In today's episode, you will meet our latest Bay Area innovator, Elle Rustique. Elle is a social scientist and educator turned startup founder and social entrepreneur, named Milestone Maker and one of the hot shots disrupting their industries by NASDAQ in 2019. When I decided to, I call, jump from the ivory tower, I really jumped into Silicon Valley. I joke that that's how I got my MBA, was because I joined, attended all the meetups and then just started doing it. Elle's journey is truly inspiring. From her role as an educator at Stanford University, Elle transitioned to become the CEO of Tip Brightly, the company she founded in 2015. My mother was a housekeeper. When I was growing up, she would take us to McDonald's with her tips. There was a dark time where I thought, I can't do this anymore. There's no one to help. There's no money. And she said to me, look at what you're doing here. They're just like me. You're helping me. And so I just, I thought, okay, I'm really helping women like my mom. We just work hard. We just want extra money. Some money that a woman would most likely spend on her children or their home, because that's what women do with their earnings. In this episode, we'll explore Elle's perseverance, as well as the unique opportunities for learning and growth in Silicon Valley. This is Bay Area Innovators, and I'm your host, Steve Espas. Elle, welcome to our program. Thank you so much for having me, Steve. Well, so I want to ask you, you worked at Stanford as an educator, and then you made this change where you went into entrepreneurship. Now, I almost got a job at Stanford after graduating. It's one of the most prestigious universities in the U.S. I still regret in some ways not getting the job. I ended up in the private sector at LSI Logic. Tell us a little bit about Stanford, about your time there, and the transition you made to entrepreneurship. Yeah, so I came to Stanford in 2003, and I came to do a post-doc. So it was in education. So prior to moving to Stanford, I was in London, and I was doing research on, this is quite boring. It has nothing to do with tipping, but education policy. But the thing that is related to what I'm doing now is that I was very interested in opportunity and equity, diversity, so a lot of the DEI stuff, although they didn't call it that then. And so when I came to Stanford, I was doing the post-doc, and what my mentor, who was actually at Columbia, where I did my master's, told me that she'd like me to do the same research that I was doing in England here in the States. And so that's kind of what landed me there. So I was doing that research and then finishing that up, and then my mentor professor, she created a lot of think tanks and organizations. So during that time, I was a researcher for these various projects, and they all related to schools and opportunity, quality of education, inclusion, and that's what we worked on. I would say, too, that it was about education innovation and school change. So that's definitely a theme that came through. Well, I'll ask you more later about the opportunities and resources that exist in the Bay Area and Stanford, because it seems like it's probably unparalleled in the world. So what made you start your own business? Right, so I think it marked about a dozen years at Stanford, and I was doing what researchers do, writing papers, leading teams, and I felt like it was just time for a change, to be perfectly honest. I was kind of rethinking whether papers and publishing was really the way to create change. I felt that when we'd go to these conferences, we were simply presenting our papers to each other and that there needed to be a wider audience. So I felt like, though I enjoyed the research and I was very committed to these issues, I didn't think that we were, and I say we, were making a big enough impact as fast as we needed to. So I decided to do what a lot of people are doing, which is starting a mobile app, creating a mobile app. And being at Stanford, I think that's one of the things you were going to ask me about, is it's such a rich environment for thinking, for people doing incredible things with research, and it's just a very stimulating academic environment. And so it became a place where I could really think about this problem that I'll say I wanted to solve. And that's, you know, I happened, when I was a researcher, let me backpedal. So when I was a researcher, we did a lot of travel. And so I would find myself increasingly in these situations where I couldn't leave a tip. And so not being able to do that created a frustration for me. In a hotel, did it? In a hotel, yeah, in a hotel. Because I felt that I was sitting there in my room, I had just paid my bills, I had just sent money, I had just rebalanced my portfolio, all these complex transactions, and I couldn't leave a simple tip. So this was the problem that I kept experiencing over and over again. And I think what happened was just the way this life works sometimes is that there's just a synergy. My wanting to do something more concrete and create change and solve a problem, and then this problem that I wanted to solve, and then being in an environment that allowed me to kind of really explore, how would I think about this problem? I was very influenced by design thinking at Stanford, which really took a different approach to how do you create a product. So it was very much built on values and what was important to me rather than coming in and saying, I just want to create a mobile payments app. It was more about, I want to create a solution that's going to help people and enable guests and hotel guests like me to be able to leave a tip. So you've been recognized by NASDAQ as an innovator and a disruptor in society, not society, but in the industry. Tell us about tipping. What is the culture of tipping in the U.S.? People like to tip for good service, right? Yes. And this is something that you wanted to reward. You wanted to have the good service being rewarded through the righteous tipping. So you saw the problem in the hotels, that this is not happening. So how did you go about to change this? Yeah, so I think what I saw was really a missing piece. So it wasn't really, I already knew that people wanted to tip, that people feel good about giving, appreciation. It's already well-grained in our society. So what I saw this as was just simply a lack of connection. It was really a technical problem because we had mobile technology, we had financial technology, and it just wasn't connecting. So the intent was there for people, and always will be, to recognize and reward good service, but they just didn't have the mechanism or the process to do so. So really it became a question of what kind of process could you put in place that would enable this transaction. And it just was natural for, I don't know if it was natural for other people, but for me, I remember sitting there wishing that some cash would come out of my phone. And it's really that desire to enable the phone to facilitate a tip, is how that all happened. At the same time, mobile payments and contactless payments were all accelerating in use. So I can tell you a little bit more about how that happened too with the QR code. Give us a quick summary of what your company does and how it functions. What is the service that it offers? So really Tip Brightly is a mobile payments platform that enables cashless digital tipping. That's put very simply, that's what it is. It's a cashless tipping provider. The way it works is really simple. So you know how you scan a QR code on a menu, and then something pops up in order? It's really the same principle. So there's a QR code in a room, in a hotel room, in a card, and it simply says, should you wish to express your appreciation, scan the QR code, leave a tip. So there's no mobile app required. All that's required is the phone. And when that housekeeper's name pops up, then a tip can be left and also a rating and feedback. So we've integrated that aspect, and that's been really useful for the hotel management and also for the employee to get that feedback. What would you say makes people tip, not just in the hotel industry, but in general, from your studies or from your research? I think it's appreciation. I think it's appreciation for the help, appreciation for the experience that they just had. It's appreciation for not having to do something that you would have had to do. I think that the research says that people who appreciate, people who give derive a lot of benefits from just the act of giving. I think that same thing happens with tipping. It feels good because you know you've helped someone. But the impetus is really the appreciation for an act that is done, and then at that point it becomes, well, why am I doing this part? So, for example, how do you explain the different amounts that people tip? So someone will get a $100 tip, and others will get a $5 tip. So it's hard to know, but one thing is you can say it is perhaps a reflection of what their ability to tip is. Some restaurants, they have a system where you tip before you get the food or the service. How do you feel about that? I'm not a fan. I'm telling you I'm not a fan. I think it's specifically in the food and beverage industry where we're talking about cafes or places like the coffee shop and sandwich shops where any time we come to a retail counter where you're asked to enter the tip before you receive the service. I think that that actually distorts the purpose of tipping. It's no longer a tip. It's actually a service fee. And I think that that has really distorted how people feel about tipping. But I think in our case with hotels and tourist attractions and valets where it's already established and they want to tip, people aren't changing because of that anti-tipping movement. You see what I mean? They're making a distinction. So you will see, in fact I just read an article where people say I really dislike these terminals that say 15%, 18%, 20%. It's random. It's really quite random. You see another terminal that will have 20% and 25%. So it really is quite confusing I think for the consumer to have that there. And in this case I would blame technology because the technology enabled the contactless payment but how the tipping got seeped into that is really interesting. I think maybe the business owner had an option to do that. But it's caused a lot of confusion and frustration. Please tell us about maybe your most rewarding experience as the CEO of your company. I think the most rewarding experience happens every day. And that is the tips that come in. As I track those, we all get alerts and I just see them. I come in and just to know that every single tip was a token, was a statement of appreciation. To know that this was a tip that the housekeeper or employee would never have received. To know that we're on track to transact a million dollars by the end of the year. So all of that, to know that we're enabling that and we're making a difference. And I think I told you my mother was a housekeeper. And so when I was growing up, she would take us to McDonald's with her tips. And that mattered. That made a difference. So to me, when I see a $5 or $10 come in, I know that that is some money that a woman would most likely spend on their children or their home. Because that's what women do with their earnings. So that is extraordinarily very satisfying for me. How does it feel when you talk to your mom or your family about your business? And I can see on your face you enjoy doing this. How does it feel to do this every day and talking to your family about it? Well, I told my family today that I was going to get interviewed today. And so I do share my progress. And they also follow me on social media and LinkedIn. So I always see my son and my family, my sister. I ask them for advice. I've asked for things usually around marketing. My mom is really proud of me. There are times when I, you know, there was a dark time where I said, I can't do this anymore. I'm tired. And, you know, there's no one to help and there's no money. And I said, I just can't do this. And she said to me, look at what you're doing here. And she said, they're just like me. You know, this is me. And you have to, you're helping me when you do this. You're helping me. So, yeah. And so I just, I thought, okay, I can't give up, you know, because I'm really helping women like my mom. And she really pointed it out. I think she also said, you know, we just work hard. She associates herself with the cost keepers. We just work hard. We just want extra money. Yeah. So that really, yeah, I just, you know, I just started crying. Next, I want to ask you, how important was this whole ecosystem that exists in the Bay Area at Stanford to make your company grow, to make you grow and learn? And how can others benefit from this, what I think is an amazing system that we have here? Yeah, I mean, I think there's no place in the world like, you know, Silicon Valley, the Bay Area. And I benefited, and I still benefit from being here. I think it all started when I was at, you know, Stanford University, which is just a place where it's really nurturing of new ideas. And so there are a lot of opportunities there to just learn from some of the best thinkers, you know, in the world. And you need not even be a student, really. You just go. And so when I decided to, I call, jump from the ivory tower, I really jumped into Silicon Valley, into the valley. And there was so much out there that I could just learn immediately. So one of the things that happens a lot here are events, right? So there are events on product. There are events on, you know, how do you navigate the legal part? How do you hire? Every aspect of starting a company is all about, like, this ecosystem is about supporting startups. I mean, it doesn't make it any easier, but it's there to really help you. And like I said, there's no place in the world. So, you know, I joke that, you know, that's how I got my MBA was because I attended all the meetups and then just started doing it. There were also a lot of organizations, and there was one real important organization. I will credit them for the rest of my life, and it's called V-Lab. So it's an organization founded by MIT and a Stanford collaboration. And essentially what the members did was kind of scout out different technologies. So in advance, two or three years in advance of what happened. So there would be a working committee, and we would research the topic, and we would pull a VC who funded that type of technology. We'd pull two of the leading startups, and then we'd pull an incumbent who was challenging that. And that was really, you know, a do. So I learned a lot from that. And there was one event that I think actually really solidified my decision, and it was an event around financial technology, FinTech as they say. And basically all the startups were about challenging Wall Street, and that's actually what the title of the event was, Silicon Valley Takes on Wall Street. And that for me was, it kind of still gives me a little chills. When I saw that, I thought, this is okay. What we're doing is going to be challenging payments and this, and this is a good thing. So I really thought it was fantastic that there could be that kind of a title of an event that said, You're Challenging What's Taking on Wall Street. So it really galvanized me. I definitely identify with that. I started my first company when I was 21. And like you said, it doesn't make it easier to start a company, but it takes out the mystery. It takes, you know, I say, Here's the steps. This is how you do it to get it started. And that's a huge help already, not to mention all the other opportunities. Yeah, I mean, there's always someone that can help you with, you know, a business plan, a roadmap, a vision statement. There's just, it's just everyone knows what that is. And it's the only place where, you know, I would be at a cafe and I would hear people talking about options and things like that. Yeah, it's pretty funny. Please tell us about the challenges of management, some of the things that you learn and you apply in your daily work. Yeah, I think management is absolutely central. It really can make or break a startup. And, you know, a company need not be a startup. But in a startup, you know, the management is really the glue that holds everyone together. It's small, right? The nature of it is small. So it's important that the manager really not only articulate the vision constantly, but also really supports and builds the capacity of the team. So everyone's doing this for the first time really, right? So it's important that the management, or like me, will see someone who's maybe struggling with something and try to help them or someone who is not doing, you know, really well and should probably not be part of the team. But those decisions of like how to support the team and create that synergy is really hard. It's one of the most challenging things to do because part of it is intention. The other part is like how do these people come along? Where do you find them? So when people are saying, how did you manage to get all these people working for free, Al? I said, you know, they just wanted to, they believed in the vision. They believed in the mission, and they could see working for me. And I think I'm different from other CEOs because I have a background in education. So naturally, I really care about everyone succeeding as a person, as a staff member, as a team member. I remember someone telling me about this grid. And okay, so you imagine this grid, and there's four quadrants. And on one axis is, you know, skills and competence. And the other axis is being a team leader. So the people that you want to have on your team are those who are highly competent and real good team leaders, right? Someone who is not so competent but is a team player you can work with because they want to learn, they're being a team player. And then, you know, over here we have low team player, low skills. Those are easy to say, you know what, you're not a fit. The hardest people to manage are those who have high level of skills, but they're not a team player. That's really tough because it creates sort of this dilemma. Like on the one hand, we need those skills, but, you know, at the cost of, yeah, of toxicity. So success being part of hard work, I think that's so important. I kind of want to just throw this at you about AI. Now, it seems to me that AI, it's almost have the opposite effect, right? Because you're saying you don't really need to work hard because AI is going to do all the work for you. You can just sit and do nothing, and then a lot of people lose their jobs. So that's where the disconnect comes, right, between the technology and humanity, right? Yeah, I think there is a disconnect, and I think that question is a real one to ask. And I think the people who should be asking it are the leaders, the top, of, you know, what does it mean to have, you know, a humane organization. It's the, I think that, you know, I still think that with AI, with any technology, there's always a human element behind it that's some value, that has some value to it. It helps, it should help introduce the right questions. It can still help with, you know, presenting, you know, information in a certain way so that people are still capable of, like, sifting through different, you know, information. And it's just, I think that, you know, even with writing, right? So you can write a letter, and it can be straight to the point. You can write another type of letter, and it achieves the same point, but you feel better about it. So I think the same kind of thing could essentially happen where, you know, there's certain words that can be used, and if you're humane about it, you'll be seeing, you know, back behind the scenes, you're seeing the kind of answers that are coming up, and then just, you know, creating something like, okay, use nice words, please. So anyway, you know, I don't know, I think that's a pretty, just an observation, you know, is that there needs to be always, in my opinion, you know, some humanizing factor or else, you know, the technology will just, yeah, overrun what our values are, and I think that that's the danger. I don't think we'll always need people, but yeah. Now I want to switch gears and ask you, we briefly chatted about this before, the Silicon Valley is determining pretty much the technological future of the world through apps, through Facebook, through all these companies, right? However, most of these companies are driven by engineers, so you have engineers that are pretty much creating the landscape for the whole world. Now, of course, they're very talented, very good engineers, but tell me your thoughts about how to get more non-engineers, more creative people, educators or, you know, psychologists, part of this process of creating this technology. Well, I think, you know, design thinking, that process is one place to start because it starts with values and, you know, what are we trying to do and why and for whom and explores the whole aspect of like the human, you know, being. So if they're in this, if they're, what is it that they need to do? So it puts humans at the center as opposed to the technology and like, okay, we're going to build an AI, you know, AI this or that. It's sort of like, what do humans need and how can AI enable it? So it's a difference between where you orient things. I think that people, let me say this. I had a harder time, you know, doing what I was doing because I didn't fit patterns. I think that, you know, if you do have a startup, you have a company, it's really important to value kind of the impact of the technology on people. Like who is it affecting? Who is it not affecting? Who is it affecting that we didn't intend to affect? It all starts with a question. So if you ask these questions, then it gives an engineer or team pause. So, you know, if the leader of the team, director of engineering, or the CTO comes in and you're saying, all right, you know, what's happening with this product? Is it creating problems for other people? It just creates, it makes them think about that. So I think the answer is having different perspectives for sure. It's hard to do that in this environment. I think it's just having an organization that is inquiry based, I called it, it's about asking questions and not being afraid to ask the hard, tough questions. And, yeah, I think it's just, I call what I do is emotionally intelligent product design. You know, that we really take into the emotions of what people, how people experience it. And how needed is it for humanity versus a fad or something that's, you know, just making it more technologically advanced. Yeah, because I think no matter what country you come from, you know, we have seen gratitude is a universal emotion, you know, appreciation is as well. And so that's kind of how I, you know, you kind of see it. It has to sort of surpass all of that in order to be something that is, I think, humane, you know. Yeah. Well, in conclusion, any last thoughts or any advice for the young people out there who want to start a company and they're on the fence thinking about how to do it? Just do it. I think my advice is find something that you really are concerned about that really, you know, drives you. It really makes you crazy that this problem exists because that's what's going to, you know, take you through. And be, you know, be mission aligned, meaning there are a lot of times that you'll have decisions that may not be, you know, related to what you're doing and just trust your instinct. And, you know, whether it comes to people or, you know, just product ideas, you know, there's just, you have to kind of, you know, your vision is your moral compass. And I think it's important, you know, as someone who really values humanity and technology to keep that in front of you and always know, okay, this is what we value. I value collaboration. I'm going to have a company where people talk to each other. You know, I value appreciation. You know, this product is really going to do as much as it can to enable that. You know, and we have to mirror our values too. So I think those are all things. I know it's not easy and you learn it, but that's sort of my advice having done this for, you know, some number of years. El, thank you so much for your time. Good luck to you with your company and everything you're doing. Thank you. Appreciate it, Steve. Thank you. Thank you for watching another episode of Bay Area Innovators. If you have a suggestion for someone who should be on our show, we would love to hear from you. Please send us an email at sfbay.epochtimes.com. Thank you and see you next week.