Urban Company (earlier UrbanClap) Business Model— services, a button away from your doorstep!
For years, progressive globalization has sourced our needs near us. But how much nearer can it get? At your doorstep, perhaps? Today you will learn how Urban Company Business & Revenue Model ease your daily life.
A. What is the Urban Company Business Model?
Urban Company is a web and an app-based company that brings services, from personal care to house help, from online booking to your home with no hassle. After a two-year struggle, juggling multiple ideas and two not-so-successful startups, the three founders — Abhiraj Bhal, Raghav Chandra and Varun Khaitan, launched Urban Company in the summer of 2014, after pooling in a certain amount as their share to kick start their journey to flourishing entrepreneurship.
B. Urban Company Services Insight
Since it is a platform where professionals help is brought to the client, it offers a range of services for all professionals around you. It is mostly divided into subsections namely:
1. Salon at home:
This Urban Company service includes basic parlor requirements like a spa for women, hair styling and makeup. It also includes wellness experts such as a yoga instructor or a fitness trainer.
2. Massages at home:
As the name suggests, this service by Urban Company lets clients have professional massages at home.
3. Appliance and Electronics Repair:
Often, warranties don’t last long and we end up with sparked appliances. This can cause people some trouble and unwanted shopping. But here, you can seek professional help for repair work around your appliances at home.
4. House Help:
Bachelors often have a problem finding house help. Online service booking makes their life easier by finding the right professional for them. From deep cleaning and pest control to cook everything is available over the Urban Company service portal.
Oh, wait! There are more Urban Company solutions.
E-commerce is a forever booming platform that requires people to constantly come up with new and innovative ways to stay in the competition. So why would they fall behind? Urban Company might plan to come up with new services in their platforms such as tuition, cooks and PG rooms.
The advantage of having these over a rate — based platform is that we can have an informed and adequate comparison between the multiple professionals offering their services online.
C. How does Urban Company work | Urban Company Working Model:
The booking of service on the Urban Company business model is a simple 6 step process.
1. Web or application
Any digital platform works for the booking of a service. The application would have additional features that make it easy for navigating and booking.
2. Set Location
The location has to set for where the service or services are required. They mostly are homes or offices.
3. Pick service
The picking of the service requires choosing your subcategory and category. From an array of professional services, you need to pick out your requirements. This would give you the nearest provider’s service, which aids in time efficiency and productivity.
4. Set address
After that, your exact address needs to be set for the provider to seek your service location easily.
5. Date and time
Urban Company business model provides you with the opportunity to seek help on the set time. Hence, the date and time are to be set accordingly by the client.
6. Payment
Reviewing of payment and online transactions are done to set the service.
This platform is a two — way street and hence there are certain steps that the provider takes to accept the service.
7. Review the request
They send the request for the service to all professionals near the set location. The date and time are reviewed by the provider for matching the schedules.
8. Accept or deny
The provider has a choice to deny the service or accept it if the request doesn’t suit their schedules.
9. Confirming Service
The service is booked and they send the details of the service to the client for review and for identification purposes.
10. Refund
If for some unforeseen circumstances, the provider is not able to service the client, then an immediate refund is offered via the application.
D. Urban Company Revenue Model
So how does the Urban Company Revenue Model make money by being a platform for service providers and seekers? The answer lies in the question. By being a platform, the Urban Company working model earns revenue certain ways namely:-
1 Memberships
As every application in the market out there, Urban Company provides its users with memberships, which leads them to discounts for future bookings. This adds to the Urban Company revenue model.
2 Selling leads
Selling contact details of clients through legal agreements also gets them revenue. Upon creating the account, the service agreement states this policy which upon accepting, the client can start booking services. This isn’t live yet but can add significant value to the Urban Company revenue model.
3 Commission base
On receiving a service payment, the Urban Company gets about 5 to 30 percent of the payment depending on the type of service that was practiced. This contributes to the maximum revenue earned by the Urban Company.
E. Urban Company’s Competition in the market:
Of course, the competition in this industry never ceases to exist as it is an upcoming industry. Urban Company Working Model, besides being a service-platform giant, faces certain drawbacks that can lead to rising problems.
Personal Engagement
If the client makes a personal agreement to the provider, they could become a permanent partner after a fixed price. This can lead to one less client for the company.
Cyber Attacks
Cyber attacks are pretty common on online platforms. It requires constant parties trying to dent or attack the company to be taken care of on a daily basis.
Security
Even though the providers have a set location to go to, there is always a threat to security for both the client and provider.
Competitors:
Lastly, E-commerce is a niche market that has a never-ending supply of upcoming ideas and companies. Competition is a competition in itself, for this company.
Want a quick look on Urban Company working model, catch the YouTube video:
English Language: Click Here
Hindi Language: Click Here
F. Why did this idea of the Urban Company Business Model soar?
There are multiple reasons why this ship has sailed well, which includes
Service satisfaction
They offer a 30-day guarantee for every service provided and a 10K worth of insurance which satisfies all clients.
Freelancing
The majority of the workers, to make ends meet, work freelance while doing a full-time job. This platform allows them to accept services to their own accord which helps the providers to successfully run their business.
Advertising
Advertising plays a major role in today’s world. It gravitates the attention of people to the product, in this case, a company. The better the advertisement, the more is the customer base and Urban Company is doing that right. From billboards to search hits, they have their advertisement bases covered.
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