Business Model of Urban company and revenue model

Business Model of Urban company and revenue model

Our needs are endless, every day comes up with a new requirement to streamline our daily routine. In today’s era, Urban Clap, now renowned as an Urban Company has become a one-stop solution for all your requirements. Whether you need a salon at home or a perfectionist to clean your home and make it brighter like a new one, Urban Company has top professionals for all your requirements. The business model of Urban Company is to connect service seekers with the best service providers. The services that are listed on the platform are beauticians, yoga instructors, mechanics, lawyers, electricians, photographers, educational tutors, plumbers, and more.

The business was incepted in the year 2014 to bring a transformational change to household chores. Earlier, the household was the only segment of our in which a transformation was never expected. With the commencement of the unique business model of the Urban Clap, the working procedures and the remuneration of workers have been fuelled up.

The Urban Clap project report emphasized giving a single platform for service providers and service seekers to connect, unlike other companies such as Justdial and Sulekha. The company started with a few professionals and now with the raising marketing strategy of the urban company, they have a huge workforce registered that counts close to a sum of 50,000 professionals which is continuously growing with a queue of more than 15,000 professionals seeking to be a part of this successful venture.

Urban Company is now ideal for most startups, and most entrepreneurs are looking forwards to the swot analysis of an urban company to attain proven guidance for success. Are you also interested to dive into a deep urban clap case study to know the secrets of how the company crawled the journey of scratch to the sky-high level within no time? Then you are on the right page. Here, we are going to discuss UrbanClap project documentation profoundly, un-boxing all the success secrets of this company.

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    What does Urban Company do?

    The working model of Urban Company is very simple to understand. For example, if you are in urgent need of house help who can clean your house from every nook and corner but the manual process is hard to get or is taking too much time, then what will be your next move? You may search online for a service that can serve you with a complete package of home cleaning within the least possible time. This is what The Urban Company does. It is an online platform that offers all types of domestic help at any point in time based on your request. Either it is a hot sizzling night and your AC needs a repair, or you are getting ready for the party and you need an immediate salon treatment at home, the Urban Company helps you to reach out to the best professionals within no time and let you set the visit time slot of professional at your required time, making your job much easier.

    The urban clap case study depicts that the initial intention of this company was to work closely for the requirements of various individuals with the service providers and convert each service provider into an entrepreneur.

    History of Urban Company:

    The commencement of the company was dated back in the year 2014 and was laid down by Varun Khaitan, Raghav Chandra, and Abhiraj Bhal. Before starting this innovative idea, the partnership of the three worked for an idea called Cinema Box, where users can stream movies and videos during their journey using Wi-Fi.

    The initial budget of Urban Company was 10 Lakhs which they utilized in developing an effective mobile app giving an active platform for the professionals and the service seekers to connect. Now, the Urban Company is effectively functioning over eight different cities of India. Within 6 years of functioning, the company is now receiving approx. 5,500 service requests in a day and have got attained 100% customer satisfaction by the team.

    urban company app development

    Here is the subterranean discussion of the Urban Company business model canvas:


    The company was incepted to construct a rigid bridge between the service seekers and the providers, keeping the quality of the services higher at the minimal possible cost. Altogether, the company has received 5 rounds of funding in which they were capable of raising around $57 million from 7 investors. The initial seed capital was raised by the founders and was around $ 1 million which was later increased to $1.6 million. By August, the company succeeded in gaining the attention of top investors like Tiger Global, Steadview Capital, and even the topmost industrialist Ratan Tata. By the end of 2019. the company raised funding of $185 million.

    Two-fold business model:

    The ultimate objective of the Urban company is to provide the best services to their customers at the best prices. To attain this level of perfection, each professional getting partnered with the company is verified and tested based on their work history. To ensure the right professionals are reaching out to the customers, Urban Clap uses the most advanced automated algorithms that filter out service providers based on the user’s requirements. 

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      A brief description of the business model of Urban Clap:

      Services with fixed prices:

      Services like plumbing, electrician, and home cleaning are having a fixed cost model, in which the customer chooses a professional to get a solution for his requirement and pays the remuneration to the company through the app. From the received amount, the company deducts certain pre-decided service charges and pays the rest to the professional as their payment.

      Services without fixed prices:

      Under this service model, the company charges the professional to list their services on the sponsored page of the app allowing the customers to generate leads. Under this model, the professional is responsible to display their services, qualities, and costs to convince the customer to use their services. In this, users get to know detailed information about the service providers even before they opt for the services.

      in such a model, the Urban company gives five options to the users, from which users can choose any based on their requirements.

      Key components of Urban Company’s business model:

      Brand statement:

      Avail the service seekers to reach out to the best and most certified service providers in no time.


      Robust and responsive mobile application

      Super engaging and easy-to-use website

      Key activities:

      Helping the users to find the best services and simplifying their jobs with the help of technologies, such as machine learning and artificial intelligence. using artificial intelligence, the company can serve personalized solutions to the customers.

      The price of the services affects the time slot selected by the customers.

      Use of an effective marketing strategy o reaches out to all nooks and corners of the city.

      Revenue sources:
      • Lead generation
      • Reverse auction
      • Commission from the payments of service providers
      • Advertisement platform
      Effective Customer Relationship Management
      • Use of social media
      • Round-the-clock customer support
      • Review and rating to help other customers know the services better

      How does the business model of the Urban company work?

      The Urban company case study depicts two different ways of functioning, which are described below:

      How does the business model of the Urban company work?

      Service receiver’s end:

      • Using the app of Urban Company, users can visit a list of specific service providers and can choose one among those depending on their requirements.
      • A range of products is indexed in the app, from which users can choose any specific service and then can filter the providers based on their budget.
      • Once a kit of service is purchased by the user, he/she can select a time slot and date based on their availability.
      • The app and also the website allows the users to know the work history of the service providers via review and ratings, helping them to choose the best solution.
      • Users can pay the service charges via the app or can make the COD payment.

      Service Provider’s end:

      • Once a request for a service is generated on the app, it is notified to the service provider. They have the authority to accept it or to decline it.
      • The business model of Urban Clap (now an urban company) is designed to assist service providers to evaluate their job constraints and can accept or reject based on those obligations
      • Once the service request is accepted by the service provider, an alert is sent to the customer notifying them about the service provider.

      A brief discussion of UrbanClap’s  Business Model:

      The prominence of the Urban company has reached all far in the Indian cities and it is actively working in the 10 major cities of the country with a huge workforce. Apart from the advertisement channel, the revenue of the company is also boosted by the commission gained from the registered service providers. These all revenue channels were launched in the very first few years of the inception of the company. The second revenue channel was started a few years later with the rise of funding and lead generation.

      The company has also given a chance to the freelancers to work on this huge platform and earn money. Within a small period of 6 years from the commencement of the company, they have succeeded to get an accelerated ROI with enhanced sales to a sum of 116 crores in the financial year of 2019.

      Last year was a financially drown year for every business and so for the Urban Company too, where they lost approx. 72 crores due to the pandemic. But now, the company is working at its highest pace to overcome the losses and to break its record of annual revenue.

      Being at the height of success, still they are working with a thirst of attaining a higher level of success and are continuously working to register their name at the sky of success. Now, the Urban Clap has become an ideal for all startups to re-energize their strategies and help them build up more effective ones.

      The Urban Company is expanding its wings and initiated its services in Australia and is also planning to expand its services in UAE. In 2018, the company started the on-demand service in Dubai, and now it is covering other locations like Abu Dhabi.

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        The marketing methods used by Urban Company are listed below:

        To stand out from the crowd, marketing is one of the most potent tools that sets your agenda out from your competitors. Urban company is using a distinct way of marketing that focuses on grabbing the attention of the targeted customers. A few of the major marketing methods opted by the Urban Company are listed below:

        Ad searches and inorganic marketing:

        The ultimate agenda of marketing is to generate potential leads by reaching out to your targeted customers and letting them know about your services. Google paid ads are the same that allow you to display your ads at the top of the SERPs for the relevant keywords to reach out to the targeted audiences who are seeking solutions for the same query.

        Ads on social media channels:

        Just like the Google search engine, various social media channels such as Facebook and Instagram allow you to run paid ads on the channels letting you reach out to the maximum audiences. Urban Company is creating very engaging and attractive video and image content to grab the attention of social media users to drive at least once to the website or the application and try opting for the services.

        Influential marketing:

        It is a showcase world where most of the audiences get derived easily from the words of celebrities. Urban Clap has been using the top celebs of renowned television and Bollywood to talk about their experiences with the company and about the services offered by Urban Clap. In the present era, influential marketing is making a great change in the lead generation and sales of the company.


        Urban company has gained recent popularity among the crow but it is being a successful brand from the very initial years. The seed funding raised for the company during the commencement was $ 1 million which was later on raised to $1.6 million. The Urban company has got funding from great business tycoons, such as Tiger Global, Steadview Capital, and Ratan Tata. The business model of the Urban company is strategized specifically for users and the service providers that enhance the company’s revenue every year and lead it to the milestone of success. The company is having an app as well as a website, and both are empowered with the potential of Artificial intelligence and machine learning, serving more personalized experiences to the customers.

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