Why is an App Like UrbanClap a Perfect Option for Start-ups?
The Urban Clap business model revolves around connecting service providers with service seekers. Urban Clap is an online solution that enables individuals to search for skilled people to help them with daily services. The services can range from educational tutors, cleaning, lawyers, engineers, photographers, and more.
Urban Clap, a home service marketplace, has witnessed an operating revenue of INR 116 Cr in FY2019. It is almost a 150% increase compared to last year. Whereas Urban Clap had experienced a 225% jump in revenue for FY 18, which is higher than FY17.
Urban Clap has reported a 103% year-on-year rise in revenue to ₹216 crores between 2019 and 2020 on demand in its wellness and beauty vertical. Want to understand the UrbanClap Business Model and understand how they channel their make functions and money. Hence, without further ado, get started right away.
What is UrbanClap?
Urban Clap is also known as Urban Company. It was launched in November 2014, a services marketplace directed at the Indian market, whose objective is to connect service professionals with consumers.
It operates in more than 16 cities, and it has over 300 employees as well as 65000 professionals enlisted. UrbanClap was founded by Kanpur Varun Khaitan, Raghav Chandra, and Abhiraj Bhal in 2014; it aims to be profitable by 2019.
It’s leading home service solutions in Asia with a presence in India, UAE, Singapore, and Australia. Now known as Urban Company, is marked as the fastest-growing start-up nationally as an on-demand marketplace that helps connect service seekers and providers. It’s an end to everyday issues. If you’re in search of a mechanic, a beautician, a plumber, a yoga instructor, a counselor, or a lawyer, an app like UrbanClap is the best option to find all.
Went live in 2014, it has fueled the intention of changing how service providers work and pay. Home services are one of the sectors that failed to witness transformations. But UrbanClap changed everything by enabling you to get connected with the best of their kind. The team faces many challenges and is still paddling them all.
At the initial stage, the company started with a handful of professionals and now has around 50,000 professionals, and another 15,000 are in line trying to be part of the growing community. Let’s explore how this start-up has leveled up its business. Explore to unbox the path of success of Urban clap right here.
UrbanClap Facts & Figures: Explore Every Here!
Year of Launch: 2014
Founders of UrbanClap: Varun Khaitan, Abhiraj Bhal, and Raghav Chandra.
Headquarters: Delhi, India
Live services on UrbanClap: 107 services
The number of people using UrbanClap: 5+ million as of 2021.
The average transactions occurring on the platform each month: 450,000
Provides services in 5 countries and 49 cities
Average rating: 4.2
The number of service providers: 32,000+ service providers
An average number of daily customer requests: about 200 to 250 requests each day
Service categories in number: 75
Percentage of monthly UrbanClap returning users: 40%
Amount UrbanClap has raised in funding: $470 million.
In April 2021, UrbanClap successfully raised $255 million in a financing round and confirmed a valuation of $2.1 billion. It has joined over a dozen start-ups in India that have gained unicorn status this year.
The Series F round was led by Wellington Management, Prosus Ventures, and Dragoneer, while Steadview, Vy Capital, and Tiger Global participated in it. The Gurgaon-headquartered home service company said the new round features a capital infusion of $188 million while the remaining is a secondary sale by early investors and some angels. The start-up has raised around $470 million by 2021.
Looking at the success of Urban Company, many are looking forward to developing an app similar to UrbanClap; if you are the one looking to develop the same, White Label Fox can help you with it. Just Specify your requirements, and we can help you launch an excellent multi-service on-demand app at a pocket-friendly price.
UrbanClap Business Model: Explore How the Company Works?
Being an on-demand platform, UrbanClap connects internet users with offline workers. During the initial level, it acts as a search and finds tool. But nowadays, the company operates on the model that helps them, list professionals, train them, and connect them to users in real-time.
UrbanClap makes it easier for users to book regular services, helping them get all their work done more efficiently and systematically than ever before. Users just need to download the app from the Android or iOS app store, select the services, schedule the services, and get all their work done at their convenience.
UrbanClap promotes the process of finding trained local professionals. A platform similar to UrbanClap also supports professionals by removing intermediaries and by enabling them to direct access to customers. The UrbanClap business model works mainly in two ways, this includes:
- Fixed Charged Services
- Services Without Any Fixed Charges
Fixed Charged Services
Urban Company or UrbanClap accepts from the app like Urbancalp and then charges its dues to the hired professionals like electricians, home maintenance experts, plumbers, and more. The company cuts fees on the collected funds.
Services Without Fixed Charges
UrbanClap is paying lead generation as well as funding listing to the professionals. It doesn’t charge directly from the customers in services without fixed charges. The professionals have to pay a fee for approving the order; if they can persuade the customers to purchase the services, monetizing is successful.
Users are provided with around five options from which they have to choose the most affordable one. If the professional service profile is not shown, then they can earn payable credit. However, if the algorithm is successful, then less work must be performed by the users.
Workflow to Have Insight into Explore How UrbanClap Works?
The 21st century is all about on-demand services. With the advent of mobile technology and the internet, people can easily connect over a long distance. With the uncertainty due to pandemics, the pace of online services has increased steadily. Having an online presence can help businesses accelerate their revenue, and it has proven a motivational factor for many to build a presence online with advanced solutions.
One of the best examples of a thriving on-demand marketplace for skilled people is the UrbanClap business model. The revenue generated by Urban Company is impressive, and however, professionals get a fantastic amount in exchange for their skills.
The success of effective handling and proper business planning. People can easily connect with the professional for the provided work, and they get in-home service. There are various ways by which the service company is generating revenue accurately. Working of UrbanClap business model depends on:
Service Receiver End
- Through an app like UrbanClap, users can quickly go through a services list depending on their needs and choose the perfect one;
- The UrbanClap business model helps users choose a particular service; they can easily select the package from the available options. Users can choose the service provider based on users budget;
- Once the package is selected, users can easily choose the date and time for an appointment;
- Platform similar to UrbanClap allows users to check the service provider based on their qualities. The presence can be guaranteed by visiting visitors profiles;
- Payments are done using COD or other payment gateways supported by the platform;
- The users rate and review the services.
Service Provider End
- An app like UrbanClap has two folded functions: one for the professional and users;
- When a user request for service, the professionals in the area get a notification; they can either choose to accept or deny the service;
- UrbanClap business model is designed in a way that helps experts or skilled person to analyze work commitments, they can choose to accept as well as deny the request accordingly;
- If the request is accepted; the provider and users get notifications to confirm the booking;
- If emergency professionals back out, they’re charged.
UrbanClap Revenue Model: Explore How Company Generates Money?
UrbanClap uses a four-way approach to generate money. The lists two options categories: the fixed pricing services accounts and the second the booking section, while the other is the variable pricing services and non-booking. The brand follows different strategies to bring capital to the table.
Platform similar to UrbanClap mainly generates revenue from the commission, and it charges around 85% of the total price of the service to the brand owners in the commission-based process.
Additionally, the company supports all customers by offering them reliable and fast service. Depending on the job, the app demands a commission from each serviceman. The more work they do, the more they are paid for the home services they provide.
UrbanClap supports the strategy of charging the specialist for listing the second group and lead generation. Through the method, the customer is not specifically booking the service. However, the time spent in the awareness of the operation, helping to approve the request, a specialist must pay a fee.
Monetization is based on the capabilities of the specialist to convenience every customer to book their service. UrbanClap introduces users to experts who might vote for their assessment. When a professional profile is not presented, it gets credit paid back; the matchmaking algorithm is crucial. The better the algorithm, the lesser the work that needs to be done by the customers.
Lead generation provides a way to generate income. However, the critical source of revenue generation for UrbanClap is commission charging. Any of the customers define the needs in lead generation; clients can either contact the aforementioned experts. Experts can contact the client. UrbanClap charges the lead generation from servicemen and professionals.
One of the effective methods of earning money is an advertisement. Suppliers, businesses, as well as service providers, use an app like UrbanClap to display the advertisements in return for the company’s advertisement fees.
Home Service App Development is a Need of the Hour: Isn’t it?
Urban Company’s business model aims to reach a comfortable, faster, and organized way to satisfy users’ requirements. Before booking an appointment, both service providers and users can make the perfect package depending on their needs.
The company earns revenue through reverse auctions and commissions. With the mobility solution similar to UrbanClap, it becomes easier to offer secure services to complete their needs.
If you want to launch an on-demand handyman app like Uber, we can help you with it. We at White Label Fox provide the best app and web development service for all types and sizes of business. Get a quote and solve your queries today by contacting us at [email protected]