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Why Urban Company's Business Model is so successful?

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Urban Company’s Company Overview


Urban Company is a marketplace for freelance labor in India. It is headquartered in Gurugram, Haryana. It was founded in November 2014 by Varun Khaitan, Abhiraj Bhal, and Raghav Chandra. As of 2019, the company had 20,000 service professionals across 10 cities in India. The company offers services like beauty services which include Facial, Manicure, and pedicure, waxing, and make-up, home cleaning, Plumbing, Carpentering, AC repair, Painting, Electrician, and Fitness Trainer.

Urban Company, formerly known as UrbanClap, is a leading technology-driven platform in India that connects consumers with a wide range of professional services. Established in 2014, the platform addresses the need for reliable and vetted service providers across various categories, including home services, beauty and wellness, appliance repairs, and more. Urban Company operates through a user-friendly mobile application, offering a seamless experience for users to discover and book services.

The company's business model revolves around aggregating service professionals and connecting them with customers in need of their expertise. Urban Company earns revenue through a commission-based model, charging service professionals a percentage on each transaction facilitated through its platform. The company also offers a subscription-based membership, Urban Company Pro, providing users with additional benefits and perks. With a commitment to quality, transparency, and customer satisfaction, Urban Company has emerged as a trusted platform for on-demand services, contributing to the evolution of the gig economy in India.

https://www.urbancompany.com/

Headquater: Gurgaon, India, India

Foundations date: 2014

Company Type: Private

Sector: Consumer Services

Category: Platform

Digital Maturity: Digirati

Tags: home services, local services, service industry, household services, beauty services, wellness, home cleaning, relocation, plumbing, electrical, carpentry, appliances, painting, pest control, home spa, salon at home, yoga, fitness, party makeup, dietician, nutritionist, physiotherapy, counseling, ac repair, refrigerator repair, washing machine repair, tv repair, microwave repair, water purifier repair, geyser repair, ro repair, salon, spa, makeup, beauty, waxing, facial, massage, haircut, nails, manicure, pedicure, body massage, hair spa, hair smoothening, hair straightening, salon packages, beauty packages, hair color, hair highlights, bridal makeup, pre-bridal package, party makeup, party makeup artist, wedding makeup, makeup artist, beauty treatments, beauty services at home, beauty salon, beauty parlour, beauty care, home salon, home beauty services, beauty services at doorstep, beauty services at home for women, beauty services at home for men

Urban Company’s Related Competitors



Urban Company’s Business Model Canvas


Urban Company’s Key Partners
  • Service providers
  • Investors
  • Payment Gateways
  • Brands
  • Technology Partners
Urban Company’s Key Activities
  • Operations
  • Marketing
  • Customer service
  • Scheduling
  • Training
  • Recruitment
  • Legal
  • Product management
  • Product development
  • IT
  • IT maintenance
  • IT security
  • Financials
  • Management
  • Strategy
Urban Company’s Key Resources
  • The Urban Company app is a platform that allows customers to book at home services like beauty or plumbing or electrical or carpentry or cleaning or painting)
  • Urban Company has over 20.000 service professionals and operates in 8 cities in India and 1 city in the United Arab Emirates (Dubai)
  • The app is available on iOS and Android
  • Urban Company has raised about $37.5 million in funding from investors like Accel Partners
  • Saif Partners and Bessemer Venture Partners
  • The company has acquired three companies in 2016 like HandyHome.
Urban Company’s Value Propositions
  • To provide the best services in the market
  • To be the largest services platform in the world
  • To provide services to the customers at their doorstep
  • To provide services to the professionals who are looking for jobs
  • To provide the best services in the market
Urban Company’s Customer Relationships
  • personalized
  • convenience
  • quality
  • trust
  • reliability
  • security
  • recommendations
  • word of mouth
  • online assistance
  • online booking
  • online payment
Urban Company’s Customer Segments
  • Mass market
  • B2C
  • B2B
Urban Company’s Channels
  • Website
  • Mobile app
  • Google Play
  • App Store
  • Social networks
  • Customer support
  • Blogs
Urban Company’s Cost Structure
  • salaries
  • IT infrastructure
  • Development
  • Marketing
  • Traffic acquisition
  • Operations
  • Legal
  • Taxes
Urban Company’s Revenue Streams
  • It charges a 20% commission on the service providers
  • It also earns through the sale of products

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Urban Company’s Revenue Model


Urban Company makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:

  • Transaction facilitator
  • Revenue sharing
  • Subscription
  • Online marketplace
  • Two-sided market
  • On-demand economy
  • Peer to Peer (P2P)
  • Sharing economy
  • Access over ownership
  • Digital transformation
  • Ecosystem
Analytics


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Urban Company’s Case Study


Urban Company's CASE STUDY

Our journey into the exploration of Urban Company, formerly known as UrbanClap, begins in November 2014, when three ambitious entrepreneurs—Varun Khaitan, Abhiraj Bhal, and Raghav Chandra—envisioned a formidable bridge that connects skilled professionals with consumers in need of their services. The platform's promise was a significant one: to bring an organized, reliable, and seamless solution to the fragmented freelance labor market in India.

Urban Company: The Genesis of an Idea

Urban Company emerged from the founders' collective frustrations with finding dependable service providers for everyday tasks. Recognizing an acute gap in the market, they set out to create a platform that would revolutionize how services are availed in India's burgeoning urban centers. This transformation was not just about addressing a superficial need but about fundamentally altering the customer experience and the professional's economic landscape. What makes Urban Company special is its curated, technology-driven approach, which guarantees vetted service providers, clear pricing, and reliable delivery of services. A commitment to these core values has helped the company cultivate a robust user base and increase trust within the ecosystem.

The Digital Marketplace Model

Operating as a consumer services platform, Urban Company’s business model is an exemplary representation of a two-sided marketplace, connecting customers with service providers through a seamless digital interface available on both iOS and Android. By charging a 20 percent commission on each transaction, the company ensures a steady revenue stream while maintaining quality service (Source: Business Today, 2022).

Turning Data into Growth

Statistics from the year 2019 indicate that Urban Company had onboarded over 20,000 service professionals spread across ten major Indian cities (Source: Crunchbase). These numbers exemplify the platform's ability to scale while keeping quality in check. Moreover, it isn't just about quantity; the company's systematic training and upskilling programs for its service professionals further bolster their market position. The company has also expanded its footprint internationally, servicing clients in Dubai—marking a significant step towards international scalability. According to a report by TechCrunch (2019), Urban Company has raised approximately $37.5 million from premier investors, including Accel Partners, SAIF Partners, and Bessemer Venture Partners. These funds have been instrumental in technological upgrades and city expansions, driving the company towards its larger vision.

The Unique Value Proposition

Urban Company excels in creating value not just for customers but also for service professionals. For customers, the platform offers the convenience of at-home services, reliability, and an extensive range of options—from beauty treatments to plumbing repairs, simplifying their modern-day needs. For the professionals, Urban Company is a game-changer. By offering a stable flow of jobs and a mechanism to receive positive customer feedback, which is translated into visibility and higher earnings, the platform creates a win-win situation. Moreover, the Urban Company Pro subscription provides additional benefits, enhancing the customer experience even further. According to Professor Michael Porter at Harvard Business School, "a company’s enduring success is not just found in immediate profitability but in creating a sustainable competitive advantage grounded in unique value propositions." Urban Company illustrates this principle by offering unique services bundled with trust, quality, and convenience.

Commitment to Quality and Training

Urban Company’s rigorous quality assurance mechanisms are noteworthy. By providing extensive training programs and vetting procedures for all listed service providers, the company maintains high service standards. It's a model built on instilling professionalism and skill enhancement—a benefit that is twofold, for the professionals and the end-users.

Customer-Centric Approach

In today’s competitive market, customer loyalty is crucial. Through personalized, tech-driven experiences facilitated by their app, Urban Company ensures a consistent and engaging customer journey. This is complemented by features like online booking, secure payments, real-time tracking, and prompt customer support, all contributing to a higher degree of customer satisfaction. The word-of-mouth publicity from satisfied customers further fuels growth and helps establish a loyal user base.

Economic and Social Impact

Beyond its business success, Urban Company has contributed significantly to the gig economy and has influenced the social structure in a transformative way. For consumers, it’s about saving time, reducing effort, and ensuring quality service—all vital functional needs in modern urban lifestyle. For service providers, it offers a legitimate means of livelihood, upskilling opportunities, and financial stability. A survey by the company revealed that service providers witnessed a 40 percent increase in their earnings within the first year of joining Urban Company (Source: Urban Company Internal Reports, 2022). According to McKinsey & Company, platforms like Urban Company are pivotal in the digital transformation of service economies, contributing to broader economic growth by making local services more streamlined and accessible.

Conclusion: The Urban Company Experience

Urban Company is not merely a facilitator of services but a harbinger of change in how urban India (and now Dubai) perceives and avails of these services. By leveraging technology, focusing on quality, and maintaining stringent control over service delivery, the company stands out in the crowded service marketplace. Its holistic approach to creating value for both consumers and professionals showcases a perfect blend of business acumen and social foresight. As Urban Company continues to expand and innovate, it stands as a testament to what is possible when technology meets human need at an intersection of quality and reliability. This case study captures just a glimpse of their journey—a journey that’s far from over and holds promise for continued growth and impact.


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