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Urban Company

UrbanClap (now Urban Company), started six years ago, is one of the successful hyperlocal home service start-ups today. The Gurugram-based firm is now like a gig marketplace, which makes hiring a service professional an easy task. In fact, local services are just a clap away with UrbanClap. It is present in 18 cities all over the country with 5 million+ happy customers and 50,000+ trained professionals.


Most of the marketing is done via word of mouth and advertising through celebrities and influencers on social media. Recently as a part of a rebranding exercise, it was renamed as Urban Company to signal its global footprint and diversification into home maintenance and repairs, apart from just beauty services. Currently, Urban Company offers seven services, which are beauty, spa, grooming, repairs, cleaning, painting, and fitness, and yoga.

Brand differentiation

With a wide range of personalized services at affordable rates and verified professionals, UrbanClap has branded itself as a trusted company. It invests in the training of professionals to provide quality services. It also facilitates direct interaction of customers with professionals and ensures no spam.

Business Model

Business Model Canvas for Urban Company

Urban Clap works for the people searching for services and for the professionals who are ready to give their services. It facilitates the task of searching for a skilled professional. Moreover, it also helps professionals or servicemen to expand their business smoothly. Urban Clap not just makes services or professionals visible, but also help them in lead generation by giving their contacts to required customers. Basically, they remove the middlemen, and that is how they are making a difference in everyone's life. They give servicemen a customer to serve and earn.

Through the commission, Urban Clap generates 85% of its total revenue. In the commission-based method, they charge from service owners some percentage of the total price of the service. In this way, they help both customers by making a quick and reliable service available to them. They charge a different commission from every vendor or servicemen based on their work. Thus, the more the work is completed, the more commission they get from providing services at home.

In lead generation, the company charges professionals for every successful service conversion. Company also provides the feature for professionals to advertise their offerings. Lead generation and advertisements are a good way to generate profit. But Urban Clap's main source of revenue generation is through charging a commission.

Tackling COVID-19

The Urban Company has been working as an employee-first business during the pandemic. They announced interest-free loans adding up to 30 million to its 22,000 of 30,000 most impacted employees with the flexibility to pay back once the normal work resumes. A lucrative Covid-19 medical insurance of INR 25,000 coupled with income protection up to INR 14000. Effective communication played a pivotal role in the company's culture, where they counseled their employees one-by-one through video conferencing, assuring them both psychological and financial support.

The start-up believes that by tweaking their operating structure (strict use of PPES', masks, gloves, and sanitizers) and the introduction of new policies, they have created value for their primary and secondary stakeholders.

What started as a mere idea by three founders- Varun Khaitan, Abhiraj Bhal, and Raghav Chandra has emerged as the fastest-growing start-up with presence in India, Australia, UAE, and Singapore.

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