Urban Company’s business model revolves around connecting Service seekers with the service providers. It is an online platform that helps people to find the right professionals for their home-related daily services. These services include educational tutors, plumbers, beauticians, lawyers, photographers, electricians, and much more.

This post will explain the business model of Urban Company in detail, their functions, and the way they make money. Without any delay let us dive into it.

Urabn Company Business and Revenue Model


Urban Company is a startup with a basic idea of people who are sitting at home can hire any type of services they are looking for. It provides services to all it may concern. Urban Company has its mobile application in both Android and in iOS platforms, it connects the service providers with the customers. The company has overcome many hurdles and now become one of the best and fast-growing one.

History of Urban Company Business Model

The company was started in 2014 by Abhiraj Bhal, Varun Khaitan, and Raghav Chandra. Varun and Abhiraj founded Cinema Box which allows travelers to stream videos, movies on trains, bus or airplane with the help of Wi-Fi. Later Raghav joined them.

In 2014 – September they co-founded Urban Company with an initial budget of 10 Lakhs. Using mobile applications as a platform, the business model of Urban Company connects service providers with the customers who are looking for the service.

Urban Company is running more successfully in around 8 cities of India. Around 60,000 professionals are working in Urban Company. For a single day, 5,500 service requests are fulfilled by the team with their service.

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Founding and Funding

The company was initiated to bridge the gap between the service seekers and the service providers. The company provides many services, maintaining quality control, training individuals. In 5 funding rounds the company raised $57 million for 7 investors. From Accel partners, SAIP Partners, Rohit Bansal and Kunal Bahl the seed capital increased to $1.6 million.

Two-fold Business Model

For your day to day needs the Urban Company provides the best suited experts services. You can hire Photographers, Yoga trainers, beauticians, interior designers, engineers, lawyers, accountants, electricians and much more based upon your required services. Automated matchmaking algorithm is used by the team of Urban Company. In order to provide the best services to its customers, they do a police verification and background check for all their partnered professionals.

The business model is as follows,

Services with fixed charges – For Home cleaning, plumbing, electrician works the company gets money through the app from the customers and pays to the hired experts. From the received fund they take a specific amount as commission.

Services without fixed charges – Urban Company charges the experts for sponsored listing and for lead generations. Users get to know the service before paying. To accept the request the professional pays a fee. It will be a successful one if the expert convinces the customer to buy the service.

The user can choose the comfortable options from the list of 5 options. The service provider gets paid credit if the profile is not viewed.

In the past few years Urbaclp achieved more success. For the data the app uses Artificial Intelligence. It helps in addressing the user’s needs in a better way. They not only allocate the best resources but also they monitor the entire service process. The founders combined AI-backed processes and Machine learning. The company is handling everything in an efficient and smooth way so that customers at home can get high-quality services. If the company continues to run as the present it will turn to reach more new achievements in the upcoming years.

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Top Interesting facts that are associated with the Business Model of Urban Company

• Founders – Abhiraj Bhal, Varun Khaitan, Raghav Chandra
• Launched Date – 2014 – October
• Brand statement – Get instant access to affordable, reliable and certified services
• Headquarters – Gurgaon, India
• User Base – >3 billion
• Employed professional experts – >50,000
• No.of. Servicers – >100
• Monthly orders – Average of 4,50,000
• Company Valuation – $480 billion

In the year 2015 Ratan Tata, invested a certain amount in the company. Urban Company is running more successfully in 8 cities including Chennai, Bengaluru, Mumbai, Delhi, Hyderabad, Kolkata, Ahmedabad, and Pune. They are planning to initiate in Chandigarh and Jaipur.

Business Model design

Urabn Company Business and Revenue Model

Key Activities:

• Simplified user experience with Machine Language and Artificial Intelligence
• Marketing services
• Pricing controls the scheduling
• Reaching Tier 2 cities

Cost Structure:

• Technological Infrastructure
• Marketing expenditure
• Employees Salaries

Key resources:

• Mobile applications (Android and iOS)
• Website
• Customer Engagement:
• Customer Support
• Social Media Interactions
Review and Ratings

Revenue Streams

Three revenue streams are incorporated with Urban Companys business model
Commission – When customers book an service provider from the Urban Company platform they pay a fixed amount and from the payment a commission goes to the company.

Reverse Auction – Service providers pay Urban Company a fixed amount for listing their services on the Urban Company platform. In exchange to this amount, the company helps them in Conversions and lead generations.
Advertisements – Manufactures, services and businesses use this platform to run their ads and through this Urban Company gets a fixed amount.

Urabn Company Business and Revenue Model

Working of Urban Company Business Model

Service Receiver End – with the aid of the application, the users can check for their requirement from the list of services that are available. The app allows the users to choose the service that they were looking for, based upon the budget the choice is made by the user. After selecting the packages, the user needs to choose the time and date for the service appointment. The app also allows the users to check for the service providers qualities by viewing their profiles. Payment can either be made as Cash On Delivery or by advance. Reviews and Rating options are made for the users to rate the services.

Service Provider End – The mobile app has a 2-folded function – one for the service professionals and other for the customers. When a Customer requests a service, the professionals receive a service request and they either accept or reject. The app is made in a way that the professionals can either accept or deny the service request based upon their commitments. Once the professionals accept the request, both the user and the professionals get a notification to confirm the booking of the service.

Final thoughts

The business model of Urban Company aims to reach a faster, comfortable and organized way to bridge the user needs and the service providers. Before booking an appointment both the user and the service provider can engage to make the best package depending on their requirements. The company earns money through commissions and reverse auctions. With the mobile app the company offers more secure services to the users to complete their requirements.

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