The Urban Company’s Business Model for Embracing Gig Workers
Urban Company, previously known as UrbanClap, is an Indian company that provides home services such as beauty treatments, cleaning, and repairs. The company, founded in 2014 by Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, has now reached beyond India to include the UAE, Singapore, Australia, & the USA
The company’s full-stack business model involves taking on the complete responsibility of delivering services, including onboarding professionals, training providers, quality control, and payment management. The primary means of revenue generation is from commissions charged to service providers for each task completed, professional fees for accepting service requests, and advertisements from service provider efforts to increase public awareness
Urban Company’s goal is to empower and transform aspiring gig workers into micro-entrepreneurs. It provides support mechanisms such as market access, credit facilities, insurance, training programs, and inventory and payment assistance. With this comprehensive support, service providers can improve their abilities, earn more money, and be financially stable
Urban Company’s growth has been marred by challenges such as maintaining consistent service quality across various geographies and addressing concerns from service partners about commission rates and work conditions, leading to protests in several cities
The company intends to expand globally, broaden its service offerings, and develop its product vertical by sourcing and providing tools to professionals. Despite its ongoing focus on profitability, its innovative approach ensures that it is suitable for future success