Basics of Urbanclap: Have a Look Into Its Business Model


Posted on: 25 May 2022 by Nairobi John

UrbanClap is an online marketplace that provides on-demand home services. It has a customer-centric approach, with the idea of 'any problem, any time' and simplifies the process of finding and hiring a service provider.

What if you could hire a professional to perform all of your housework for you at a very low cost? Varun Khaitan had a simple notion that led to the creation of UrbanClap, one of India's most popular service applications. UrbanClap has created a reputation for itself in the six years since it was founded, connecting individuals with nearly every service under the sun while aiding companies and generating a modest profit.

But that's all secondary. How can a small, just five-year-old company earn the trust of millions of people, especially in a country where people are hesitant to trust their neighbors? The solution could be hiding in plain sight. Instead, it's the straight business model. Before heading on business strategy, let's understand what UrbanClap is and some information about the company. 

What is UrbanClap/ Urban Company? 

The Urban Company / UrbanClap app is the largest at-home service provider in India and the United Arab Emirates. It's a one-stop-shop for a variety of at-home services. Almost every at-home service may be hired using the app, from beauticians to sofa cleaners, carpenters, car-cleaners, plumbers, mechanics, etc.

Users can connect with trained and experienced specialists for at-home assistance through Urban Company. Users can begin using the app by simply logging in, but professionals who wish to sell their services on the site must first complete an intense training curriculum. 

Furthermore, the portal employs advanced match-making technology to locate the nearest professional who meets the user's needs and is accessible on the specified date and time. ACCEL and SAIF made the first seed investment in Urban Company. Urban Company is currently looking to expand globally. As a result, the company's name has been changed from UrbanClap to Urban Company, which has a more general appeal.

Have a look at some key facts about the company, 

  • Year launched: 2014
  • Founders: Varun Khaitan, Raghav Chandra
  • Headquarter: Gurugram
  • Number of Employed Professionals: >50,000
  • Market valuation: $933 million
  • Number of services: 107
  • Monthly transactions: 450000

Urban Company's business approach is based on connecting service providers with service seekers. First, let's look at the business model using the VARS framework (Value Proposition, ARC, Realisation, and Scope).

A Business Model of UrbanClap: How Does It Function

The business model of any brand depicts its overall operations and strategy from its functioning to the partnership to revenue streams and much more. From the above discussion, you might know how simple and clear urbanclap's business model is; it connects people with whatever services they need. And with the help of its application, users can hire any professional and get all the tasks done in no time. 

Value Proposition 

When there are other competitors, value propositions explain why someone should do business with you. The main purpose of value propositions is to attract more clients to your company and, as a result, boost its EVA. Customers and sellers benefit from the following value propositions offered by Urban Company:

For Customers

  • Easy, quick access to services from the comfort of your own home
  • Payment choices are numerous.
  • Data security and protection
  • Customer feedback on the services
  • Local sellers' information has been verified.
  • Chat with local vendors in the app
  • For more premium occasions, special professionals are in high demand (Like wedding photographers)

For Service Providers

  • Dedicated platform for service business expansion
  • Work on your own terms flexibility
  • Various business tools are available to you.
  • Provide leads that are appropriate to their service costs and areas.

This is how UrbanClap creates a win-win situation for each stakeholder involved. This is the reason why more entrepreneurs are looking for on-demand app development companies to expand their business quickly. Now, let's see how UrbanClap makes money and what are its primary revenue sources. 

How Does UrbanClap Make Money?

Bookings Commission

The first is the company's commission when a customer uses the UrbanClap platform to book a service provider. They pay a fixed fee using cash on Delivery or even digital payments to provide this service. A commission is also taken off when charging the service provider.

Reverse Auctions: 

The second way is to hold a reverse auction in which service providers can participate. Again, bidders benefit from UrbanClap's lead generation and conversion services.

Advertising and Promotions

The third and final way is to use adverts. Featured adverts of service providers willing to pay a premium are displayed on the company's platform. Again, both the providers and the company benefit from this.

Working Operation of UrbanClap Business Model

Service Receiver End – Using the application, users can search for services that meet their needs from a list of available services. The app allows users to select the service that they are looking for based on their budget. After picking up the packages, the customer must schedule the service appointment time and date. 

The app also allows customers to see the profiles of service providers to assess their qualifications. Cash on Delivery or advance payment options is available. In addition, users can rate services using the reviews and rating choices.

Service Provider End - The smartphone app serves two purposes: one for service providers and another for customers. When a customer asks for a service, the professionals are notified and must either accept or refuse the request. 

The software is designed so that professionals can accept or reject service requests based on their schedules. When the experts accept the request, both the user and the professionals receive an email confirming the service booking.

Ending Note

The majority of individuals nowadays use mobile phones with internet access. As a result, apps like Urban Company enable users to obtain services immediately at their location. We understand how the UrbanClap Business Paradigm works; however, it is not a permanent model. The team is continually working to create a more user-friendly platform that is speedier and more organised to assist consumers in receiving high-quality services.

Online service businesses are booming, especially after the pandemic; if you are one of those entrepreneurs who want to take advantage of this lucrative market, this is the high time to make a decision.


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Robert May posted 01 June 2022

I appreciate the UrbanClap business model. It will be more convenient for a lot of citizens. trap the cat


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Curtis Hendrix posted 12 June 2022

I don't think just anyone can understand exactly what urbanclap offers, it's a very long topic. I came to know about all of it while I was surfing on All in all, I do in fact find the entire ordeal rather informative and useful.


Antioch Roofing posted 13 June 2022

Users can connect with trained and experienced specialists for at-home assistance through Urban Company. Users can begin using the app by simply logging in, but professionals who wish to sell their services on the site must first complete an intense training curriculum. 


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