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Masters of Scale - Episode Notes: Taskrabbit’s Stacy Brown-Philpot — Keep Humans in the Equation
Podcast Overview Masters of Scale is a podcast featuring conversations with iconic business leaders who share lessons and strategies for scaling companies. Reid Hoffman, co-founder of LinkedIn, hosts discussions that reveal triumphs and challenges faced by founders and CEOs.
Episode Summary In this episode, former TaskRabbit CEO Stacy Brown-Philpot emphasizes the importance of keeping "human" in the equation while scaling businesses. She introduces the concept of the "human cloud," which refers to leveraging a diverse workforce that can learn, teach, and adapt.
Key Themes
- Human Cloud Concept: The idea that a network of people can be more powerful than automated systems when it comes to problem-solving and innovation.
- Learning and Teaching: Humans have an innate capacity to learn from each other, and this collaborative learning can enhance productivity and creativity in the workforce.
- Community and Ownership: A sense of community among workers can lead to self-improvement, skill-sharing, and a more engaged workforce.
Detailed Breakdown
The Human Cloud
- Definition: Similar to cloud computing, but focuses on a network of people instead of computers.
- Examples: TaskRabbit and Uber exemplify platforms that harness the human cloud for task completion.
- Complexity of Human Nature: Unlike machines, humans are unpredictable and evolve over time, making the management of the human cloud more nuanced.
Stacy's Journey
- Background: Grew up in Detroit, learned early on about community and hard work through a paper route.
- Education: Attended Wharton and Stanford, and later worked at Google, where she saw the lack of diversity in tech.
- Initiative: Created the Black Googler Network to promote diversity and inclusion in technology.
Transition to TaskRabbit
- Joining TaskRabbit: Motivated by the mission to help people find work, especially those impacted by economic downturns.
- Revolutionizing TaskRabbit: Reduced task categories and improved user experience, moving from a competitive bidding system to a more structured approach.
Lessons in Leadership
- Human-Centric Management: Managers should focus on unlocking the potential within their team rather than just driving productivity.
- Embracing Change: Stacey emphasizes the importance of communicating changes effectively to all stakeholders to maintain trust and buy-in.
- Community Building: Fostering a supportive community among taskers led to increased sharing of skills and collective improvement.
Challenges Faced
- Implementing Changes: TaskRabbit faced backlash from taskers when changes were announced publicly without prior communication.
- Financial Risks: The transition resulted in initial revenue losses, but Stacey and her team stuck with their plan, leading to eventual success.
The Evolution of Taskers
- Skill Development: Taskers began teaching each other skills, resulting in a self-reinforcing community that enhanced earning potential.
- Positive-Sum Outcomes: The collaborative nature of the taskers turned competition into cooperation, benefiting everyone involved.
Conclusion Stacy Brown-Philpot's insights reveal that scaling businesses requires more than just technology; it demands a focus on the human element. The episode illustrates how community, learning, and empathy can create a thriving environment for innovation and growth.
Key Takeaways
- Keep Humans in the Equation: The human element is vital for scaling effectively.
- Foster Collaborative Learning: Encourage a culture where team members teach and learn from one another.
- Create a Sense of Ownership: Engage your workforce to contribute to the community and feel invested in the company's success.
- Adaptive Strategies: Be prepared to face challenges during transitions and maintain open communication to foster trust.
For more insights, tune into the full episode of Masters of Scale featuring Stacy Brown-Philpot.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Transcript
Automatic transcript. May contain errors.0:00AI agents can make your teams more productive, but if they aren't connected to other agents or your data or existing workflows, they can only take you so far. Any business can add AI agents, but IBM connects your agents across your company to change how you do business. Let's create smarter business, IBM. If you're focused on scaling your business, you know that complexity kills efficiency, which is why Freshworks is here to give you uncomplicated service software. Freshworks builds intuitive tools that make work easier and deliver real ROI today, not someday. Their AI doesn't replace your people, it unlocks their potential.
0:43If you want to increase your team's efficiency and uncomplicate your business, try Fresh Service for IT and Fresh Desk for customer support. Learn more at FreshWorks.com. Does it ever feel like you're paying for 20 platforms to do the job of what really should be just one? That's not software as a service or SaaS. It's SAD, software as a disservice. Replacing your stitched together tech stack with one platform for all your departments? Well, that's Rippling. Rippling eliminates the bottlenecks and busy work of legacy tools and point solutions by uniting your global HR, IT, and spend teams on just one platform.
1:25And right now, you can get six months of Rippling free when you sign up at rippling.com slash scale. That's R-I-P-P-L-I-N-G dot com slash scale. Don't get sad, get rippling. Terms and conditions apply. The rhythm is...
1:49That's D 'Laché Strouder. She's the director of music programs at the Mosaic Youth Theater in Detroit. And the song is... Six times six is 36. Six times five is 30. Even six times four is 24. And six times three is 18. Then get it, do the success, do the success, and so on and so on. And she knows the power of a catchy tune. When teachers need help making a lesson sticky, she goes into the classroom to inject a little music. We might make songs that help teach multiplication facts. We might do a rhythm piece that helps young people talk about syllables. Most people learn the alphabet through the ABC song, so it works.
2:38It's true. The ABC song is a stone-cold classic. Right up there with, I'm just a bill, and three is a magic number. My personal favorite of De Lachey's is Do the Sixes. There's just something about the beat. Six times six is 36 Six times five is 30 Even six times four is 24 And six times three is 18 Get it, do the success Do the success Few of us can resist the power of an earworm That magical series of notes That burrows its way into your brain And bursts out any chance it gets Like any good jingle, Delache's lessons stick. And not only do they stick, they spread. A few voices in a classroom.
3:36Six times six is 36. Six times five is 30 even. Spill out into the playground. From them, more kids pick up the tune. Six times six is 36. Six times five is 30 even. Till the chorus grows, expands beyond the school gates, and spreads into the world.
4:08Like any good cover band, each individual makes the song their own.
4:21It's 36. Do the success. Six times five is 30. Do the success.
4:31D. Lachey knows that possible interpretations are endless. All she has to do is open kids' ears, and they'll keep learning, growing, and singing their songs. And others, in turn, will learn from them. All those students need is the opportunity to sing. Where the tune leads them is anyone's guess.
4:55On the face of it, Delashe's teaching method is awfully simple. Just keep singing. But take a closer look at what Delashe has figured out. She doesn't direct her students to take an interest in math or science. She doesn't force them to memorize, and she doesn't even try to teach them. She knows if she grabs them with a tune and lets them sing, they'll all learn for themselves and then teach each other. Because humans are learning machines. All she has to do is hack their interests with a catchy song. And I'm hoping every tech evangelist out there just perked up at the word hack. Because I believe we can hack our way to a more productive workforce by doing something similar.
5:40Just as those students together create a choir of different voices, so is there a workforce unbound by geography formed by a multitude of people waiting to be tapped. You can call it the human cloud. It's a workforce that can teach itself, learn for itself, and discover its hidden talents. And I believe you can harness the power of this human cloud to solve almost any problem as long as you keep human in the equation. You've got to have incredible talent at every position. It's like this huge push. There are fires burning when you're going home. Can you believe it? Such an idiot. And then you go back to, this is totally going to be amazing.
6:23There are so many easy wins. I have no idea what to do. Sorry, we made a mistake. But you have to time it right. Oops. Working out of a three-bedroom apartment. Stuff that just seems absolutely nut balls. Ten years later, we're like, well, that's just how you do it. We haven't made it just how you do it. This is Masters of Scale.
6:47I'm Reid Hoffman, founder of LinkedIn, investor at Greylock, and your host. And I believe you can harness the power of the human cloud to solve almost any problem as long as you keep human in the equation. But before I go farther, let me define my terms. Most of you are familiar with cloud computing. In fact, you're so familiar with it that you've dropped the formalities. You just call it the good old cloud. Even if you're hazy on what the cloud is, you almost certainly use it every day. Every time you open a Google Doc or use Microsoft Office Online, share a file using Dropbox, or share a photo on Instagram, you're using the cloud.
7:29You're tapping the distributed power of computers across the world to store things and get things done. The human cloud is similar. But instead of tapping the power of distributed computers, you're tapping into a huge network of people. Like computers in the cloud, they're out there, waiting to be assigned a role. TaskRabbit is an example of this. Uber is an example as well. The human cloud has extraordinary potential, but it's more complex than a network of computers, and trickier to harness. Because humans are not robots, they are not a fixed variable. They're different from each other. And miraculously, they change over time.
8:12That's why the true X factor in any equation for scale is the human variable. And in particular, the very human capacity for learning and teaching each other. I wanted to talk to Stacey Brown Philpott about this, because no one I've met has thought more about how you harness the human cloud. Stacey is the CEO of TaskRabbit, the website where anyone can be hired to complete jobs ranging from simple to complex. Stacey is acutely aware of the humans that make up the human cloud and how to help them reach their potential. She's also seen the costs of not doing so. For her, it's personal. I grew up on the west side of Detroit.
8:55It wasn't the best neighborhood. It wasn't the worst neighborhood. But people looked out for each other. Of course, later on, things got worse for a lot of people very, very fast, but it was home for me. The Motor City was struggling as the auto industry's engine faltered and died. Times were tough. Communities were devastated by unemployment and despair. Stacey got an unflinching look at this reality from her very first job, the paper route. Stacey shared hers with her older brother. We would deliver the papers in the mornings, and then on the weekends, we had to go collect from people. And of course, there was always people who didn't want to pay, so I had to make sure we got paid.
9:38And how old were you then? Oh, I was about 10 years old. And so how did you get people to pay? Well, you just knock on their door a lot and often, and then you kind of watch when people's cars would pull up and see them going in the house, and you'd run out and catch them before they closed the door. Where's my money? And then I'm 10, so of course they're going to look at me and say I need to give Stacey her money. But sometimes they just wouldn't answer the door if they didn't have it. So you have to watch people when they go into their house. Most people would agree that stiffing a 10-year-old girl out of her paper route money is a jerk move.
10:13But Stacey wasn't deterred. Some people would see us, and it's like four degrees outside, and they would just give us that extra dollar. And that just meant so much. Because I know it came from people who didn't have a whole lot of money. But they were proud of us for doing real work, good work, you know, legal work in a community where a lot of people did illegal work to make money. And so I think that helped inspire me probably later on that, like, if you do get work for good people, it'll pay off. But there was a less sentimental reason that drove Stacey to lug heavy bags of paper through freezing Detroit streets.
10:53I like to buy candy. I think that's universal amongst 10-year-olds. There's a use for this money. It's called candy. Exactly. Cash equals candy. It's a fun equation you learn as a kid. But Stacey learned some tougher lessons, too. I would say that my upbringing in Detroit taught me grit. It taught me about not just the cold weather, but there's a community that needs to thrive and you need to figure out a way. Stacey found her way from her childhood in Detroit to college at Wharton, investment banking, and business school at Stanford. With her MBA in hand, she applied for a job at Google. Thirteen interviews later, I decided that this was probably one of the best set of people I've ever met in my whole life and that these are the kind of people I want to learn from.
11:44But something was missing. Stacey's high school had been 98 % African American. At Stanford and then Google, she found herself part of a vanishingly small minority. Why were there so few black people in the tech industry? What could be done to tap the huge pool of talent she knew existed? She took those questions to her then boss at Google, Sheryl Sandberg. I said, Sheryl, I think we need to create a network for black people, and I really think we should just recruit more. And you've done a lot of stuff with women, and she'd already really advocated a lot of things around women. And so can you help me with this?
12:20And she said, no, because I'm not Black and you are the person that needs to do it. And she says, Stacey, at one point, you have to realize that you're the person that we've been waiting for to make these things happen. True to form, Sheryl Sandberg got Stacey to lean in. And Stacey's initial effort was decidedly minimalist, a simple email chain. I added all the Black people that I knew and I told them to add all the Black people they knew. This initial move was as low-tech as it gets, but watch how the power of the human cloud kicks in. Recipients forwarded the email to their contacts, who in turn forwarded on to theirs.
12:59The conversation grew. All of a sudden, we were a club that then formalized into not just about recruiting, but we wanted to attract, we wanted to introduce people to the concept of working in tech. We wanted to retain people, we wanted to build community. That club became the Black Googler Network. It pioneered schemes to reach out to talented Black students who otherwise may have missed out on a career in tech. It was one of Stacey's first experiments in tapping pools of talent who sit outside the stream of opportunities. Stacey's time at Google took an unexpected detour to India. Part of her job in India was to make Google's ad platform smarter.
13:43The India team used to approve all the ads that showed up on Google. And there's literally a person that had to go yes, no, yes, no. And finally, we were teaching the machine to do yes, no, yes, no. But at some point, there's some judgment about what's on this page that the machine just can't learn. Most people assume that what's served by Google and other platforms is all technology, all servers. They don't realize the intensity of the human engine behind it. It was this human engine Stacey was building in India. You assume that all automation is possible. And when you're sitting in Silicon Valley, you have that mindset that everything can and should be automated.
14:27And our entire lives will be more efficient because of it. And that was the moment when we learned that there has to be some human judgment somewhere in society. Otherwise, we will make bad decisions. We talk a lot about technology teaching us how to be smarter. But I still believe that there's human beings who just teach technology how to be smarter. And I think that's an important concept that we took later to TaskRabbit. She was starting to explore the essential role that human intelligence plays in artificial intelligence. But her time in India also taught her a more subtle lesson about human nature.
15:04I was stubborn. I had my own way of doing things. I'm a very organized person, and so I would show up at my one-on-ones. When Stacey says one-on-ones, she's talking about the one-on-one meetings with employees who report to her. And I'd have like the 10 things that I wanted to accomplish. And then I'd get through like the first one and feel frustrated that we didn't get through the nine other things. On one level, Stacey was learning what every thoughtful executive learns when they want to work inside another culture. Things don't always work the way you expect them to. So I had that same meeting with the same person the next week and just get more and more frustrated.
15:46But what I needed to learn faster than I learned at that time was that this meeting is not about you, Stacey. This meeting is about the person that you're leading. And that person needs to talk for 25 minutes in the 30-minute meeting in order to be effective in their job. And so seeing more of what I needed to do to help others be successful than what I needed to do to be successful, I had to get hit over the head with that many, many times before it worked. That's a great lesson. The lesson here is more profound than just a cultural exchange. Stacey was learning something essential about humans and how to get the best out of them.
16:24As a manager, your job isn't just to direct your employees or drive their to-do list. Your job is to turn the light on inside them. With her task lists and efficiencies, Stacey had forgotten there was a human in the equation. And so many managers and organizations still do this today. We unknowingly treat our teams like an assembly line, units of work to accomplish tasks. We create systems based on efficiency and rationality. But humans aren't always rational or efficient, at least not the way a machine is. And that's a good thing. Unlike actual machines, which have to be coaxed into learning, people often spontaneously teach each other and themselves if you give them a chance.
17:14A new book zeroes in on just this point. It's called Build an A-Team, and it's written by disruptive innovation expert Whitney Johnson. She's helped countless founders lean into learning. I think we all mean to be a great boss. We mean to be a place that people love to work. The problem is, is that this on-the-job development gets lost in the day-to-day chaos. So then people get bored and stuck, and then they stagnate. And because they're stagnating, so does your organization. Of course, no one intends to let their employees stagnate. What happens is that the better they are, the more you need them to keep doing what they're doing.
17:55You want people to stay, you want them to stay right where they're going to do you the most good. But if you're going to have an organization where learning is taking place and engagement is taking place and you're avoiding getting disrupted, recognize that you and every person on your team is a learning machine. You want the challenge of not knowing how to do something, then learning how to do it and mastering it and then learning something new. Basically, you, me, everyone, we want to learn and leap and then repeat. Learn, leap, repeat. It's a formula for innovative companies and satisfied employees.
18:32As we'll soon see, it's also the formula for the human cloud. But that's getting ahead of our story. This is Mike Nicholas, Capital One business customer and co-founder of Ansett Uncles, a plant-based restaurant and community space in Brooklyn, New York. And he's telling us how they started a product line. We already had a space in the community. The food was an extension of our lifestyle and our values. So we know we wanted to create something that was an offshoot to that. Our pepper sauce. That's my grandmother's recipe. That's like a liquid gold, right? If someone wants to approach us and ask us, what do we do?
19:09We provide flavor. Growing a product line is no small investment, but Mike and his wife and co-founder Nicole were able to manage with the help of their Capital One Business card. Working with Capital One Business, we're able to leverage our limits and utilize those points, making sure we can continue the scale at the speed that we need it to go. To learn more, go to CapitalOne.com slash business cards. Every company wants to grow, but anyone who's scaled knows the truth. Growth creates complexity, and complexity kills growth. Bureaucracy creeps in, culture frays, and suddenly the energy that built your business starts working against it.
19:53I'm Jeff Berman, host of Masters of Scale. And when you want unfiltered insight on fighting that drift, turn to Founders Mentality, the CEO Sessions, with executive advisor, Jimmy Allen. Each episode, leaders from companies like Audible, Walmart China, and AWS reveal how they stayed fast, focused, and human, even at massive scale. Founders' mentality, the CEO sessions, business should be simple. Listen wherever you get your podcasts. We all remember the choices that shape the course of our lives. In business, world-renowned venture capital firm Sequoia Capital calls them crucible moments. Their podcast brings you inside the pivotal decisions that defined some of today's most influential companies like Stripe, Klarna, Zipline, and Supercell.
20:48Tune into Sequoia's new season of Crucible Moments to discover how some of the most transformational companies of the modern era were built. Crucible Moments is available everywhere you get your podcasts and at cruciblemoments.com. Go listen to Crucible Moments today. Stacey just returned from her tour of duty in India, turning over these new ideas about motivating and maximizing human behavior. She came back Back to Google HQ. Back to the confining familiarity of her executive suite. I looked around and I was in an office, two floor-to-ceiling windows. You know, my dog at the time was there. I had his own bed.
21:31I had a table. I had a couch. I had an assistant. I had everything that most people dream of in a corporate job. And I felt like my work wasn't done. And I said, I got to go do something else that grabs at my heart in a way that is going to allow me to accomplish more. But as luck would have it, she met Leah Busk. Leah was the founder of TaskRabbit, and she was searching for a new chief operating officer. Stacey had tried the service out and loved it. In 2013, she joined TaskRabbit. I'm a mission-minded person. And we talk a lot in Silicon Valley about missionaries and mercenaries. And I'm definitely in the missionary bucket.
22:14Google's mission to organize the world's information was, wow, that's huge. And I could do that for the rest of my life. But TaskRabbit's mission around revolutionizing everyday work really grabbed me. And it brought me back home to Detroit. It brought me back to the people who were good, hardworking people who lost their jobs because of the failure of an entire industry, who couldn't find work but had strong work ethics. And here's this great little app that is doing that. When Stacey joined TaskRabbit, it was a website and an app where anyone can hire and be hired to take on simple and not-so-simple tasks.
22:57TaskRabbit was eBay for services when I joined. Anybody can do anything, get anything that they want. And what do they want? Let us count the ways. They're the obvious tasks. Scrubbing grime off the stove so you can get your security deposit back. Helping move that ugly, heavy dresser out of sight into a spare room. But use your imagination for a moment. Because your imagination is the only limiting factor here. How about washing a prize show piglet? helping a jilted lover win their sweetheart back. You had me at hello. Steam cleaning Weird Al Yankovic's stage outfits. No, I'm not making any of those up.
23:41They've all appeared on TaskRabbit, and they've all been completed by taskers, as their freelance all-purpose workers are affectionately known. I couldn't resist asking Stacy about the strangest task she's seen a tasker be tasked with. It was the impersonate my best friend at the birthday party. This got coverage in LA on TV. And yes, no shock. It's like LA, right? No, you didn't mishear that. A tasker was hired to attend a birthday party and convincingly impersonate the guest of honor's best friend. We tracked down that tasker. Her name's Devette C. So I guess my most famous task, the one most people know about, is the time I was hired to impersonate someone at their friend's birthday party.
24:31That was pretty crazy. So Riz hired me to go to Holly's birthday party as Riz. Because Riz couldn't make it. That was Riz's answer, was to send somebody as her, as Riz. I mean, there was no hesitance on my part. Once I read it, I was like, this was custom made for me. We didn't look anything alike. I mean, there's like 20 year gap in age. There's a race difference. You know, I'm black. She's not. So there was another friend and she was going to be the one who called me by Riz's name when I walked in. The friend announced like, oh, Riz, I'm so glad you could make it. And I said, yeah, you know, surprise.
25:17and then there was just this moment of shock and then there was just laughter because it was just the kind of thing Riz would do apparently. Task Rabbit sounded like a blast, right? For clients, it was like having a digital genie in your cell phone who could make all your wishes come true. For taskers like DeVette, it meant every day was an adventure. But the freewheeling system had severe limitations. Taskers had to go through this bidding process for every task. Many found themselves in a race to the bottom to offer the cheapest prices. All right, everyone, I've got this prized piglet here that needs some serious washing.
25:55Now, he's pretty squirmy, very dirty, and he doesn't like strangers very much. Oh, and you're going to have to catch him yourself. I'll do it for$20. I'll do it for$15. I'll do it for$10. I'll even dress him in one of Weird Al's shirts left over from my last job. No extra charge. Pick me. Pick me. Pick me. This bidding system, which could be such a source of excitement for some, was exhausting to others. It took too much time to go through all those bids and choose a winner. And the open-ended Anything Goes framework set many clients up for disappointment. 50 % of the people had a bad experience.
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26:32And they told 10 times more people than the people who had a good experience. That just wasn't going to work for the long term. A 50-50 chance that each of your new customers will have a bad experience? You don't need to be a master mathematician or a master of scale to know that's bad news. To fix the system, Stacey and her team would need to rethink how TaskRabbit worked. They came up with a plan. The types of tasks people could offer were narrowed to four categories. Handyman work, home cleaning, moving help, and personal assistant. Taskers could set when and where and how they wanted to work.
27:11They could specify their hourly rates. No one could charge below a minimum rate, and they would no longer need to anxiously check their phones in case they were outbid on a potential task. As for clients, they would be able to book a tasker in a single visit to the site or app. No more scrolling through long lists of bids. Instead, clients would be presented with a short list of recommended taskers based on their rates, reviews, and skills. Stacey and her team wanted to test the new system in Virgin Territory, someplace people had not used TaskRabbit before. This way, reaction to the new system would be untarnished.
27:51We tested it in London.
27:57Because they don't know what TaskRabbit is and how it works. They've heard of it. Lots of people were in London and wanted TaskRabbit to be there, but they didn't know what the product was. The Brits loved it. The assignment rate went up. Our close rate went up to over 80 percent, not 50 percent anymore. We knew that we were on to something. And then we brought it back to the U.S. If the Brits loved it, then the Americans would immediately take to it, right? Well, not exactly. Changing an existing system is never as simple as introducing a new one. And for taskers in the U.S., the changes went down like a warm beer on a rainy London afternoon.
28:39The problem wasn't necessarily the change itself, but how they heard about it. We told them the same day that we told TechCrunch and USA Today and all of our clients and everybody. And that was a mistake because they revolted and they were upset. And mostly because we didn't tell them that we were going to do this. Some because some people weren't going to have work anymore, and they were going to have to work in a different way. What happened to Stacey is a classic mistake, one that many of you listening have probably also made. And if you haven't, listen closely. It could save you some serious pain.
29:17Stacey had implemented an objectively positive program at TaskRabbit, one that she knew would change the tasker's lives for the better and make her customers more happy too. But she forgot to tell them about it. And by letting them learn about the news and the press, she undermined their sense of investment. TaskRabbit isn't just a company. It's a community where people feel a sense of ownership. And when people feel ownership, they expect to have input or at least learn about the news before they read it online. And this isn't just true of online communities. With all products and services, there's a spectrum between I'm a consumer, and I'm an owner.
29:59If you're selling toilet paper, your customers are on the consumer end of that spectrum. Sure, they use your product every day, but they're not super invested in your cult of personal hygiene. But the more users feel their identities and economics are invested in your product, then you are no longer the sole proprietor. Your users are owners too. They may not hold equity or have a parking space in your office lot, but they are part owners in the brand, And that's always the case whether you're a community or a network or a marketplace. The reaction of the taskers had blindsided Stacey and her team.
30:36They had forgotten the very human connection they had to this workforce. But there was another issue, one they had predicted, and it was made worse by the ongoing user revolt. We knew that we were going to lose money the day after we made this decision. We didn't know for how long before the recovery would happen. For the period where we think that we are going to be in this slump before we recover, we're going to have to all be okay as a leadership team that this is happening. And nobody can fake nobody. There could be no retreat. Now, Stacey and her team were in a foxhole and they had to hold position.
31:20with artillery shells whistling over their heads, the ground shaking beneath their feet, casualties mounting, but they had to hold their nerve until the offensive passed or they stood to lose everything.
31:36At first, they lost revenue and users. The wide-ranging changes had put off many people, both taskers and clients. The narrowing of the task categories also caused a downturn in business. But over time, the new system yielded happier users. Eventually, the turnaround worked. I'm really glad that we stuck to our guns, but it took a lot of courage for us to do that. And the lesson there is you've got to have a plan if things don't work out, but you've got to be willing to stick to the plan because sometimes it will, and most times it will. The tough transition was behind them, and now something really interesting was happening.
32:15Having eliminated the most competitive aspects of the TaskRabbit system, where taskers had literally been bidding against each other, something curious happened. Hey guys, Tim here. Today I'm going to teach you how to unclog a drain. Hey, I'm Jess, and this is how you hang a picture frame. Here's how you install a light fixture. Taskers started teaching each other. They started holding classes and posting videos to teach each other skills and increase each other's earning power. It's a stunning example of what happens when you allow a human cloud to be human. It might start spontaneously and continuously improving itself.
32:58The community of taskers, they really take pride in the work that they do. Everybody seeks to get better at something. I might be naive in saying that, but all of us seek to get better at something. Particularly enterprising taskers sought out and identified new customer needs. They then developed new skills to address them and shared these with the community. It became a self-reinforcing loop that everyone benefited from. We've actually harnessed the power of the community to do a lot of the training and development. So if I want to learn how to drill a hole in a brick wall, I can charge$5 more per hour.
33:36And so someone organizes a virtual session or a live session, I can go to that. Drilling is just the beginning. Drill holes into brick walls, how to mount a TV with the wires hidden, trampolines, Christmas toys. In fact, I got one, which is like a little car for my kids. And they'll teach each other about the tricks and tips on how to do that. As you can imagine, there are extremely good IKEA furniture assemblers on TaskRabbit who can put things together in like 20 minutes. That would take two hours. What happened was that once the hyper-competitive bidding structure was removed, a supportive community of taskers emerged.
34:17They teach each other skills, increase one another's earning power. In a narrow, self-interested sense, this doesn't exactly make sense. In theory, taskers were still in competition with each other for jobs. But this is exactly this kind of wonderful expansion that you find in the human cloud. It's what happens when you keep humans in the equation. They find a way to positive-sum games where one plus one isn't two, but maybe is four or five. Because as they help each other, it becomes a dynamic, evolving, positive-sum system that helps everyone a lot more. The pie grows. I remember there was a tasker who came to my house to fix a light switch recently.
34:59And he said, you know, I remember you. And I thought he was going to remember me as the CEO of the company. But he had delivered a birthday cake and flowers for me like two years before to a restaurant. And I said, how did you go from delivering cake to, you know, electrical, light electrical work? And he said, because of the TaskRabbit community. I've always been interested in fidgeting with things. I've gone to some classes I've learned. And now I'm making like twice as much as I was making on the platform because of TaskRabbit. You can't quantify the impact of what that is and the power of community, but it's really helped.
35:42We've created this self-enabling way for people to learn and earn in the marketplace. For me, this is the most exciting aspect of the human cloud. If you give it the space, it will teach itself, develop new skill sets, and help keep the workforce adaptive. It's a powerful, self-reinforcing loop, similar to ones we've seen in other sectors. I was thinking a lot about this the other day. And I've thought a lot about recursive loops relative to people as part of the, you know, the kind of the social network loop. You know, the LinkedIn loop, the Facebook loop. The benefit of loops is they compound.
36:19So simplest loop that's well described a lot is virality loop. I send out two invitations and one of them is answered and that person sends out another, you know, 2.1 invitations and then you have an exponential curve up, right? And you can get to massive numbers very quickly. So then you go, okay, well, when you're tying human factors and human decisioning into the loop, even though the time coefficient is slower, the impact of adapting a human network, a human cloud, may be so fundamentally important because it's changing economic potentiality, because the real key question is how do we use technology to enable many more middle-class jobs is one of the things I've been thinking intensely about.
37:04Stacy is thinking intensely about how to encourage more self-reinforcing loops and more great talent pools. A lot of what we're trying to do with the future of work is make it very easy for people to access work opportunities. Inside of TaskRabbit, what about the app experience can we do to make it so that someone who doesn't have a high school education or a college degree can easily download this app, enter in some information about themselves, and be ready to accept and decline work? So we're spending a lot of time thinking about how do we make this technology simpler? How do we make TaskRabbit more accessible to more people and more affordable?
37:59You know, it used to be that at our current hourly rates, my mom would not have been able to use TaskRabbit because she just would have looked at that and said, this is too expensive. And I'd rather just do it myself and sleep less or fall asleep while I'm helping you with your homework, which happened because I can't afford this service. My conversation with Stacey really got me thinking about this human micro-entrepreneur loop and what kinds of companies and tools and data might amplify it. The creation of good and fulfilling middle-class jobs is one of the most important goals we can collectively focus on.
38:36Because when people feel more safe and secure in their economics, they feel there's a good future in front of them. And they tend to be more open-hearted. They tend to be more permissive. They tend to say things like, hey, we welcome immigrants. Hey, we should do things for other people's children, not just our own. And that's the kind of future I can get behind. I'm Reid Hoffman. Thank you for listening.
39:15a handcrafted fine jewelry store in Richmond, Virginia that got its start in a dorm room. I said I was going to try it for a year. I signed up to do craft shows, trade shows, got into a few local boutiques, and then things just picked up from there. Emily's steady success at trade shows gave her the capital she needed to invest in a storefront. Every cent that was made was going back into the business. I was nervous that we weren't going to get enough traffic, but we had a huge turnout. With Emily Warden Designs firmly establishing itself in the Richmond community, Emily would need to significantly increase inventory in order to keep up with demand.
39:52And she looked to her Capital One business card for support. The purchases were so high, I needed to get a business credit card. And I looked at Capital One. The options and the cash back was so amazing. It gives me even more of a push to take a leap in getting one or two extra stones because I have that extra cushion. To learn more, go to CapitalOne.com slash business cards. As you set your sights on a strong start to the new year, consider this. Every leader knows this moment. You've got the vision, the strategy, the plan, but somehow the team isn't clicking. Deadlines slip, momentum fades, and here's the kicker.
40:39Disengaged employees cost U.S. companies nearly$1.9 trillion every year. At Project Management Institute, teams gain the skills they need to collaborate, deliver, and turn strategy into results because the real cost isn't the training. It's what happens when you don't. Project Management Institute. Empower your people. Turn potential into performance. Find the answers at PMI.org. Your company's data is everywhere. In systems, in silos, and across teams. But if your AI can't reach it, then that data isn't working for you. Every business has unique data. What really makes a difference is how you use it.
41:25IBM helps your AI access your data wherever it lives to change how you do business. Let's create smarter business. IBM.
41:55Dan Kedmi, and Ben Manilla. Our supervising producer is Jay Punjabi. Original music and sound design is by the Holiday Brothers. Mixing and mastering by Brian Pugh. Special thanks to Chris Yeh, Bob Safian, Elisa Schreiber, David Sanford, Saeed Issepieva, Christina Gonzalez, and Sarah Sandman. Visit mastersofscale.com to find the transcript for this episode. And be sure to subscribe to our email newsletter.
42:25Thank you.
42:55unraveled. From Vanity Fair, this is Tough Cookie, the Wally Famous Amos story. Available wherever you get your podcasts.
From the publisher
You may think that to scale you need to cut humans out of the equation. The opposite is true. You can harness the power of the “human cloud” to solve almost any problem — as long as you keep the word “human” in the equation. That’s what former TaskRabbit CEO Stacy Brown-Philpot champions for this community of people who work with each other, teach each other, and continually learn from each other.
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