UrbanClap (rebranded as Urban
Company) is the fastest-growing startup. The company connects you with the best
service providers and helps you to get the solution to your everyday needs. No
matter whether you're looking for a plumber, beautician, or any other
professional, Urban Clap is the right place to find them all. You might be
curious how the marketplace business started and grabbed massive success? If
yes, let's step into the UrbanClap business model and revenue model; also,
let's check how it connects customers with service providers.
UrbanClap
went live intending to change the way how local service providers are working
and paid. Marketplace services were one of those sectors that failed to witness
a transformation. However, there were many services like Yellow Pages, Just
Dial, and Sulekha; all these companies used to hire professionals who could
provide their service, but the loophole in this approach was that a great
amount of money was spent to fill the aggregator's pockets.
However,
UrbanClap fills this loophole by connecting users with professionals who emerge
to be the most suitable of their kind. The team had lots of issues, but they
are still paddling them all. UrbanClap has developed a network of more than
40,000 trained service professionals and provided its service to more than 5
million customers across major metropolitan cities of Abu Dhabi, India, Sydney,
Singapore, and Dubai. The company is trying to grow its network by
engaging more people to be part of its growing community.
What is
UrbanClap?
Urban
Company is an Indian marketplace that provides home, maintenance, beauty, and
wellness services to its customers. The company was founded by Varun Khaitan,
Abhiraj Singh Bhal, and Raghav Chandra in 2014. It was valued at 2.8 billion after its employee stock sale program concluded in 2021; the
company operates in more than 30 Indian cities, UAE, Australia, Singapore, and
Saudi Arabia.
History, Success
Story, and Some Interesting Facts About UrbanClap
Founders
invested around 10 lakh in 2013 in a hyperlocal service platform to make it
easier for users to get connected with service providers and appoint them to
get their daily chores completed with ease. Urban Clap was rebranded as Urban
Company in 2020 as a move to launch it as a global brand.
Home
services startup has reported a more than 103% rise in revenue to ₹216 crores between 2019 and 2020 on account of demand in its
wellness and beauty vertical. The services startup had around ₹106 crores of
revenue in FY19. The net booking value of transactions processed through the
company's platform grew by 138% to ₹918 crores in FY20 compared with the
affiliated period a year ago.
Urban
Clap said that the beauty and wellness vertical contribute approximately 55% of
its revenue. This segment remained largely suspended on the platform after
lockdown and nationwide restrictions. India and UAE's largest home service
marketplace platform Urban Company has raised around $190 million from investors led by Naspers.
The
funding has doubled the Gurugram-based company's valuation to around $2
billion. The firm's value increased to $933 million after a funding round by
Tiger Global. UrbanClap has become a unicorn startup that was valued at about
$1 billion. Have a quick look at the success time of UrbanClap to unbox its
success path.
Urban
Company witnessed emphasized results post lockdown, and it's expected that the
company will double its revenue in the fiscal year compared to the previous
year. The company is working harder to grow its partner strength, helping them
to meet the growing market demand.
Co-founder
of UrbanClap Varun Khaitan said, "during pandemic spread, we re-imagining
more hygienic and safer services and have made significant investments in PPE
(personal protective equipment), safety training, and modern tech. However, our
business has been on a positive trajectory, and lots of customers trust Urban
Company to enter their dwellings and provide home and beauty as per their
requirement."
Home
services marketplace company, UrbanClap has announced a stock ownership plan of
150 crores for its service providers over the next few years. The company
has confirmed that it had received the approval for the tranche worth 75
crores; they have added a process to grant all the stocks, taking into account
the performance of service providers and longevity on the platform. Have a
close look at a few more interesting facts about Urban Clap right away.
Founders: Raghav Chandra, Varun Khaitan, and Abhiraj Bhal.
Headquarters: Delhi, India
Live
services on UrbanClap: 107 services
People
using UrbanClap: 3
million.
Average
transactions each month: 450,000
Average
rating: 4.2
Service
providers: 200,000 service providers
Average
customer requests per day: 5,000
customer requests
Service
categories in number: 75
Percentage
of monthly returning users: 40%
Founding
UrbanClap raised: $185 million.
UrbanClap
Business Model: Explore How Marketplace Platform Works?
The
UrbanClap business model makes it easier for the customers to get connected
with skilled professionals to get all their work done efficiently. It is
popular in more than ten Indian cities where it offers service; the company has
partnered with millions of professionals.
UrbanClap
has increased the field of activities and population size services, and the
company has opted to cut back on the variety of deals it has listed on its
website. After realizing that customers prefer the business model where a
highly professional was dispatched to their doors, UrbanClap started providing
its quality services. They paired with transparent pricing and standard
procedures; the team arrived in the market with its successful recipe.
Full
stacking appears to be limited to high-tech companies and is not confused with
the notion of vertical integration being utilized by traditional
"old-school" manufacturers. The main difference is the priority on
customer experience in the former notion. The vertical integration and contract
with suppliers to decrease costs and enhance efficiency. Customers can get
better and more affordable products; however, the whole customer experience is
taken care of.
Service
Receiver's End
·
Users can use a list of resources and choose the right one on the
app based on their needs;
·
An impressive UrbanClap business model enables customers to choose
specific services; it enables users to choose a range of products;
·
Customers can choose any date and time to book the appointment;
·
The user app enables consumers to check information about the
service provided;
·
Users are allowed to use multiple payment options, including cash
on delivery;
·
Users are allowed to rate and review the service provider and
their service.
Service
Provider's End
·
App has a dual purpose for users and experts;
·
Professionals get a notice when users request the service;
·
They can choose to embrace or reject the service as per their
convenience;
·
When the service provider approves a customer's request, they are
provided with all essential details;
·
Service providers are fined if they back out.
How UrbanClap
Work?
An
UrbanClap business model makes it easier for internet users to get connected
with professionals. UrbanClap was a search tool during the initial stage. The
platform lists professionals, trains them if essential, and connects them
online. It enables users to book regular services with ease.
Users can
check the app and select and schedule the services at their convenience.
However, UrbanClap promotes the process of specifying trained business
professionals. It supports service providers by selecting intermediaries and
enables them direct access to customers. The successful UrbanClap business model
works in two primary ways:
1. Fixed
Charged Services
For
electricians, plumbers, and other maintenance service providers, the company
accepts money from the app and pays the hired professional. It charges
different fees on the collected funds.
2. Services
Without Any Fixed Charges
The
company is paying funding listing and lead generation to the experts. Customers
aren't charged right away; they comprehend the operation—the professional needs
to pay a fee for approving the order. Professional is able to influence the
customer to buy the service and monetize the success.
There are
various options that users can choose as per their comfort. The matching
algorithm of UrbanClap makes it easier for users to find experts and get their
work done without hassle. However, it also helps service providers to get more
jobs and earn profits at the same time. You can also choose to invest in delivering anything app to launch your venture online and achieve similar success as
UrbanClap.
UrbanClap
Revenue Model: How the Company Makes Money?
The
marketplace company uses a four-way approach when it comes to generating money.
An UrbanClap revenue model mainly lists two categories; one is fixed pricing
service, and the other is non-booking or variable pricing services. The company
uses various methods to bring great capital to the table.
Commission
Model
The
company generates around 85% of its revenue by subscription. They charge a few
percentages of commission from the service provider; they support all consumers
by offering them reliable and fast service. Hence, the more service providers
work, the more reward they get from offering their home services.
Reverse Auction
UrbanClap
supports the approach of charging the specialist for listing for the second
group and lead generation. It is a reverse auction. Through this method,
customers are not specifically booking the service; instead, they spend time in
operation awareness. Specialists have to pay a fee to get the approval of the
request.
Monetization
is based on the capability of the specialist to convince the consumers to book
the service. The company has introduced the user to five experts who can vote
after the assessment. When the expert's profile is not present, the
professional gets the credit paid back. Here is where the algorithm for
matchmaking comes into existence. The better the algorithm works, the less the
customers have to work.
Lead Generation
It also
provides a way to generate income. However, the primary source of revenue
generation for the marketplace platform is commission charging. It charges lead
generation from service providers and professionals.
Advertisement
Besides
the above-listed approach to generating money, there are methods of earning
money which is an advertisement. Suppliers, businesses, and service providers
can invest in advertisements to display their ads on the UrbanClap platform;
the company charges advertising fees in return.
UrbanClap
has experienced great success; the company is planning new and effective ways
to build a strong presence and satisfy the needs of millions of customers in
different regions. Getting inspired by the marketplace platform, many
entrepreneurs are investing in an app similar to UrbanClap. If you are looking
to start the same, then get a quote right away.
Final Words
People
want to get all their needs satisfied instantly; the growing demand for
instance service has made it crucial for brands to opt for new ways that help
them meet the customers' needs. Urbanclap understands that very nicely and uses
AI-enabled information to better evaluate user needs. You can also choose to
follow the success path of the company; just understand the UrbanClap business
model to have a clear idea about how UrbanClap works and makes money.
If you
want to create and launch an app similar to UrbanClap, we are here to help you
out. We will capture your business needs and provide you with a one-stop
solution that satisfies all your business and customers' needs. For more info,
contact us at sales@whitelabelfox.com.
