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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.

Country: India

Foundations date: 2014

Type: Private

Sector: Consumer Services

Categories: Platform

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 Customer Needs

Social impact:

Life changing: affiliation/belonging

Emotional: rewards me, design/aesthetics, fun/entertainment, attractiveness

Functional: saves time, simplifies, reduces effort, quality, variety, sensory appeal, informs

Urban Company’s Related Competitors

Urban Company’s Business Operations

Access over ownership:

The accessibility over ownership model is a business concept that allows consumers to utilize a product without owning it. Everything serves a purpose. As a result, consumers all across the Western world are demanding more value from their goods and services, and they are rethinking their relationship with stuff.' Furthermore, with thriving online communities embracing the idea of access above ownership, the internet is developing as a robust platform for sharing models to expand and prosper.

Digital transformation:

Digitalization is the systematic and accelerated transformation of company operations, processes, skills, and models to fully exploit the changes and possibilities brought about by digital technology and its effect on society. Digital transformation is a journey with many interconnected intermediate objectives, with the ultimate aim of continuous enhancement of processes, divisions, and the business ecosystem in a hyperconnected age. Therefore, establishing the appropriate bridges for the trip is critical to success.

On-demand economy:

The on-demand economy is described as economic activity generated by digital marketplaces that meet customer demand for products and services via quick access and accessible supply. The supply chain is managed via a highly efficient, intuitive digital mesh built on top of current infrastructure networks. The on-demand economy is transforming commercial behavior in cities worldwide. The number of businesses, the categories covered, and the industry's growth rate are all increasing. Businesses in this new economy are the culmination of years of technological progress and customer behavior change.


A business ecosystem is a collection of related entities ? suppliers, distributors, customers, rivals, and government agencies ? collaborating and providing a particular product or service. The concept is that each entity in the ecosystem influences and is impacted by the others, resulting in an ever-changing connection. Therefore, each entity must be adaptive and flexible to live, much like a biological ecosystem. These connections are often backed by a shared technical platform and are based on the flow of information, resources, and artifacts in the software ecosystem.

Revenue sharing:

Revenue sharing occurs in various forms, but each iteration includes the sharing of operational gains or losses amongst connected financial players. Occasionally, revenue sharing is utilized as an incentive program ? for example, a small company owner may pay partners or colleagues a percentage-based commission for recommending new clients. Occasionally, revenue sharing is utilized to share the earnings generated by a corporate partnership.

Sharing economy:

The sharing economy eliminates the necessity for individual asset ownership. The phrase sharing economy is an umbrella word that encompasses various definitions and is often used to refer to economic and social activity that involves online transactions. Originally coined by the open-source community to refer to peer-to-peer sharing of access to goods and services, the term is now occasionally used more broadly to refer to any sales transaction conducted via online marketplaces, including those that are business to consumer (B2C) than peer-to-peer.

Transaction facilitator:

The business acts as an acquirer, processing payments on behalf of online merchants, auction sites, and other commercial users for a fee. This encompasses all elements of purchasing, selling, and exchanging currencies at current or predetermined exchange rates. By far the biggest market in the world in terms of trade volume. The largest multinational banks are the leading players in this industry. Around the globe, financial hubs serve as anchors for trade between a diverse range of various kinds of buyers and sellers 24 hours a day, save on weekends.

Two-sided market:

Two-sided marketplaces, also called two-sided networks, are commercial platforms featuring two different user groups that mutually profit from the web. A multi-sided platform is an organization that generates value mainly via the facilitation of direct contacts between two (or more) distinct kinds of connected consumers (MSP). A two-sided market enables interactions between many interdependent consumer groups. The platform's value grows as more groups or individual members of each group use it. For example, eBay is a marketplace that links buyers and sellers. Google connects advertising and searchers. Social media platforms such as Twitter and Facebook are also bidirectional, linking consumers and marketers.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.


Subscription business models are built on the concept of providing a product or service in exchange for recurring subscription income on a monthly or annual basis. As a result, they place a higher premium on client retention than on customer acquisition. Subscription business models, in essence, concentrate on revenue generation in such a manner that a single client makes repeated payments for extended access to a product or service. Cable television, internet providers, software suppliers, websites (e.g., blogs), business solutions providers, and financial services companies utilize this approach, as do conventional newspapers, periodicals, and academic publications.

Peer to Peer (P2P):

A peer-to-peer, or P2P, service is a decentralized platform that enables two people to communicate directly, without the need for a third-party intermediary or the usage of a corporation providing a product or service. For example, the buyer and seller do business now via the P2P service. Certain peer-to-peer (P2P) services do not include economic transactions such as buying and selling but instead connect people to collaborate on projects, exchange information, and communicate without the need for an intermediary. The organizing business provides a point of contact for these people, often an online database and communication service. The renting of personal goods, the supply of particular products or services, or the exchange of knowledge and experiences are all examples of transactions.

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