urbanclap case study

UrbanClap is the largest online local service providers in India. Be it event management or electrical repairs, mathematics tutors or beauty treatments, painting home or income tax filing – they are present in almost every field you need in daily life. Just a click in the app, and professionals will arrive at the doorstep for service.

Origin story :

UrbanClap was founded by VarunKhaitan, AbhirajBhal and Raghav Chandra based on Delhi and Gurgaon area. Varun and Abhiraj completed their graduation from IIT Kanpur and were classmates. After that, both of them have worked in Boston Consultancy Group. Abhiraj also studied business in IIM Ahmedabad. Raghav went to the University of California and later worked at Twitter for a while. In the year 2014 they all came together and formed this start-up.

Key features :

This company is known as the most popular home services organisation in India. There is almost no area of service UrbanClap does not cover. Having nine categories present in the app – massage and fitness, appliance repair, home cleaning, moving homes, beauty and spa, painting and renovation, weddings and events, academic tutors, business and taxes – everything here is just one click away.

Fundings and investors :

The first round of funding was held in June 2015, where the company raised 10 million dollars from SAIF Partners and Accel Partners, the famous venture capital firms . In November 2015, during the second round of funding they raised 25 million Dollars from Bessemer Venture Partners, Accel Partners, SAIF Partners again. Currently, along with these three firms, Ratan Tata, from the Tata Company is also one of the most treasured investors of UrbanClap, along with Vy Capitals.

Business strategy and model :

There are many other websites or apps that provides contact numbers for nearby carpenters or plumbers, beauticians or technicians but where is UrbanClap different from them? In the words of the co-founder AbhirajBhal, these sites have a list of middlemen who passes on the job to the respective service providers in return of some commission and thus keeping a very less amount of money for the actual employees. But this organisation lets the professionals directly register through them and provides the service directly to the customer as well.

UrbanClap is like an interface between clients and professionals, who takes around 5% to 25% of the commission, depending on the service they are providing. This entire thing is done as a simple business model which is put into action by automatic match-making algorithm according to the location. This company also runs a background check of the professionals joining their company, including a police verification, for complete customer satisfaction which is the main reason of their increased revenue.

Revenue model :

UrbanClap basically follows two types of revenue models – transaction commision and reverse auction.

  • Transaction commision – For fixed charges like plumbing, electrical repairs or cleaning the payment is directly accepted from the app to the company and then they transfer the amount to be received by the professionals to themdeducting the commission.
  • Reverse auction – For variable charges, like wedding photography or fitness trainer, the company charges the service providers depending on their capacity to cultivate potential customers. Also, the professional has full libery, that is if he is comfortable with the customer, he will pay the commission to the company, and only if he pays he will receive better client.

Statistically, its operational revenues have come up to 309% that is about Rs 45 crore in FY18 from about Rs 11 crore in FY17. From the financial report in FY18 by April, the annual revenue runrate is found out to be 100 crore. It is hoped, by FY19, the company will start having its actual revenue, which shows that this is indeed the fastest-growing start-up of India.

Marketing strategy : 

To cope up with the current market and to endorse the brand, in the app store, this organisation uses a few basics techniques.

  • ASO (App Store Optimisation) – This includes optimising the titles, keywords, description and visuals. That is the title is relevant enough, the keywords come up with easy search, the description is a one-liner with important information andbthe icon is decent and eye-catching.
    • Microsite creation and promotional videos – This helps the customers to get in touch with their services and to obtain information from microsiites and videos do the same thing in the blink of an eye.
    • Social networking – This is the most important way to connect to the customers through Facebook, Instagram and other social media websites through advertisements and attracting their attentions.
    • Data analysis – The best method can be analysing the current revenue, customer satisfaction and other inputs to channel the marketing in a proper way for better results.

Target group :

Mostly working mothers or women who do not get the time to go to salons, are the main users. Apart from them, batchelors of 25-30 age are interested in the app as well. Roughly people from all age groups, from 15-65 want something or other services with the app. Because in almost all the fields, UrbanClap is equally successful.

 As seen from the current status, this app is run in 8 major cities in India, has more than 1 lakh professionals and 30 lakh above clients. So, it can be said, within five years UrbanClap has reached quite a high pinnacle of success, indeed.