How Urban Company Works: Business Model & Revenue Streams

Urban​‍​‌‍​‍‌​‍​‌‍​‍‌ Company (UC)—the very name alone has made the process of getting services at home so simple. It has not only changed but transformed the whole way we used to access our services. Before the advent of this Company, we used to go outside to get services. But, because of UC, we are not compelled to take off from the house. What isn’t included in their list of services? Anyway, they do everything from spa treatments to handyman work and professional cleaning; that's how urban company works. The site’s mission is to offer users services that are both legitimate and reasonably priced. As a rapidly expanding online marketplace that facilitates communication between service providers and consumers. 

By means of this firm, clients get access to the most qualified professionals in their respective domains to communicate with. The company has an excellent business model to bring these services to the customer’s home and manage the related activities. Its layout is a sure way of the arrival of the right people to the needy ones in the home service marketplace business model. Let’s have a glance at the business model of Urban Company, as it’s an excellent working example of how planning, management, and business tactics all together lead to the success of the enterprise. That, in turn, made them one of the most talked-about ​‍​‌‍​‍‌​‍​‌‍​‍‌startups.

What Is an Urban Company?

Urban​‍​‌‍​‍‌​‍​‌‍​‍‌ Company came into existence in 2014 through the effort of the trio Abhiraj Singh Bhal, Raghav Chandra, and Varun Khaitan. Their own difficulties inspired the idea. Locating skilled and trustworthy service providers in cities was very time-consuming and chaotic. They imagined a platform that would make it possible for trusted professionals to be connected to urban customers in just a few clicks.

Today, the company has turned into Asia's biggest home services marketplace from a small startup with limited services under the urban company case study. To ensure a consistent quality level, the company not only connects customers with experts but also upskills and trains service providers. This emphasis on both sides of the ecosystem has been the reason for its vast customer loyalty and professional ​‍​‌‍​‍‌​‍​‌‍​‍‌satisfaction.

How Urban Company Works: Step-by-Step Process

Urban Company can operate as a tech-driven marketplace that can connect you with certified professionals for various services like home and beauty services that ensure seamless booking through payment through the mobile app or website as well. 

Selection of Service 

The customers can browse the Urban Company app or website to select a range of services like plumbing, cleaning, and beauty services in urban company business strategy. The platform can display the multiple options with clear pricing along with estimated time while picking the right professional for the requirements as well. 

Scheduling & Booking

After selecting a service, users can schedule an appointment based on the professional's availability in the on-demand home service business model. The system sends real-time notifications and confirms the appointment, allowing users to reschedule or cancel as needed, all from within the app.

Professional Verification 

Urban Company ensures that all service providers are thoroughly vetted and trained. Background checks, skill assessments, and customer ratings all help to maintain high service standards and build trust with each booking.​

Service Delivery 

On a previously established date, a service technician or tradesperson is sent to the address provided by the user to perform the requested work in the urban clap business model. The progress of the service is tracked by Urban Company's software program and allows for ongoing communication between the technician/tradesperson and the customer via the app.

Payment & Feedback 

Upon completion of the service, the payment is securely processed via the app. Users have the opportunity to rate and provide feedback on the technician/tradesperson for the purpose of maintaining quality and providing a more enhanced experience for future customers on Urban Company.

Urban Company Business Model

There are two ways of urban company business model: 

Charges for Services Rendered

The organization processes the money received through the application for plumbing and electrical home maintenance services before charging providers associated with the contractor in revenue streams for home service platforms. A separate fee is deducted from the total collected amounts.

Services without Fixed Charges

The contractor provides its service providers with a lead generation, funding, and job posting service without charging customers. The customer is made aware of how this works prior to making a purchase; that is how urban company manages service providers. The contractor's employee will charge a fee after an order has been placed. A successful monetization occurs when an employee successfully convinces a customer to buy his or her service.

A customer has five selections available to everyone; each selection will provide the most comfortable choice to the customer to examine the Cost to build app like urban company.  For instance, if an employee does not appear in the database of contractors, he or she will receive a payable credit from the company. Further, if the automated process is successful in its implementation, a customer will be required to do much less work than if he or she did not use the automated process.

Urban Company Revenue Streams

Urban Company integrates the mixed model for monetization. The business has two choices: the booking accounts or the section for fixed-pricing services with variable-price services in the urban company revenue model. The strategy the corporation employs has been effective to attract the financial resources in the scene as well. 

Commission

Approximately​‍​‌‍​‍‌​‍​‌‍​‍‌ 85% of the total revenue of Urban Company is generated through a commission-based system in the business model of home service apps. The commission system implies that the business has to take a share of the service providers' earnings. In this way, clients will always have access to a fast and reliable service, which is likely to make them happy. There are also more opportunities for service providers to sell their products and raise their income.

Generate Leads

Lead generation is the second most effective method of making money. However, the major part of UrbanClap's revenue is from commission fees from the urban company monetization strategy. Customers specify their requirements on the platform, and based on those specifications, service providers are recommended.

Bidding in Reverse

By means of the Urban Company platform, service providers may promote their offerings at a fixed rate; that is how urban company earns money. To receive financial support, the company can thus help service providers to increase their conversions and get new leads.

Commercials

The Urban Company platform, which is used by service providers, enterprises, and manufacturers in the urban company profit model explained, is available for the promotion of their services and products in return for advertising ​‍​‌‍​‍‌​‍​‌‍​‍‌payments.

Challenges Faced by Urban Company

Urban Company also faces different kinds of several challenges in this competitive market that can also impact the profitability and expansion of the businesses as well. 

Constant Financial Losses

Urban Company also experienced the net losses due to large investments in new service app like TaskRabbit and Insta Help in the expansion initiatives. There is a higher pressure of losses, which can impact profitability equally for the future growth of the business also. 

Extensive Market Competition

The essential expenses in marketing and onboarding professional services can increase the operational costs. The training and incentivizing of workers to maintain the quality of services and to add further elements like sustainable growth are challenging for every business. 

Massive Marketing with Onboarding Costs 

Marketing and onboarding service professionals incur significant expenses, increasing operational costs in Urban company clone app development. Training and incentivizing employees to maintain service quality adds to the financial strain, making long-term growth challenging.

Regulatory and Labor Issues

Urban Company is facing challenges related to gig worker classification and labor law compliance. Protests, legal scrutiny, and evolving regulations increase operational risks and potential financial penalties.

Build Your Own Urban Company–Like App with IMG Global Infotech

Revolutionize the local service delivery market with an Urban Company-like feature-rich app, customized to your vision. Partner with IMG Global Infotech to design, develop, and deploy an integrated digital marketplace for home services, beauty, repair, and more.

Customized Multi-Service Platform

Develop a fully customizable app to support various service categories, from home cleaning and beauty care to appliance repair. Our experts let you design user-friendly dashboards for customers, service professionals, and admins. 

You will be able to manage bookings, payments, and performance analytics without any hassle. With tailored branding, service filters, and flexible modules, your app can be a competitive solution in the on-demand marketplace.

Advanced Scheduling and Real-time Tracking

Empower users with accurate booking and tracking features as available in Urban Company. Customers will be able to schedule services when providers are available, while providers will receive immediate notifications and route guidance. 

Live tracking ensures complete transparency and reliability for either party. Our professionals  integrate AI-based scheduling tools and Google Maps APIs throughout, guaranteeing efficiency and high user satisfaction from start to finish of every service experience.

Secure Payment Gateway Integration 

Simplify transactions via an integrated, secure, multi-mode payment gateway for credit/debit cards, UPI, and digital wallets in the Features of home service apps. Our dedicated team integrates trusted gateways that adhere to PCI DSS standards, thus ensuring secure financial interactions between customers and providers. 

Further, the platform allows split payments, refunds, and automatic invoicing, enhancing trust and convenience while organizing your revenue flow within the app ecosystem.

Scalable Architecture and Ongoing Support 

Develop a tech foundation that will keep growing with your business. We work with scalable backend architecture using Node.js, React Native, or Flutter in Home service app development for maximum cross-platform performance. 

As your service network increases, so does the platform for new user segments and functions. Continued maintenance with performance monitoring and updates to newer versions keeps your app competitive and technologically future-proof.

Conclusion 

Urban Company has had tremendous successes in the last few years; however, it's only the tip of the iceberg. Recently, the App has started using AI-powered information to identify what each user wants and need from Urban Company, which is an indication of how Urban Company is paving the way for the future of service-based industries. Urban Company has transformed the service-based industry through the creation and use of technology.

The challenges in capturing consumer requirements, assigning resources, and tracking everything found in one place all had major obstacles; however, the use of technology is providing Urban Company with ways to fill these gaps. Home service app development companies have created methodologies that are based upon AI and machine learning and can now define how decisions are made.

Read Also: Cost To Develop An App Like Urban Company (UrbanClap)