How UrbanClap Business Model Works in 2024: Ultimate Guide

June 22, 2023
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UrbanClap is a leading online services marketplace in India that connects customers with service providers in various categories including beauty, wedding planning, home cleaning, and repairs. In this blog article, we will be discussing how UrbanClap’s business model works in 2024.

What is Urban Company (Prev UrbanClap)?

UrbanClap was founded in 2014 by Abhiraj Bhal, Varun Khaitan, and Raghav Chandra in India, and it has since expanded to four countries, including India, UAE, Australia, and Singapore, becoming one of the world’s largest online services marketplaces. The platform has over 200,000 service professionals, who have served more than five million customers.

The company has a mission to provide trusted and convenient services to its customers, so they have a memorable experience with their services. They are committed to providing quality and affordable services that meet the needs of their customers.

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Some Interesting Facts

  • UrbanClap’s revenue in 2022 reached $100 million, marking a significant increase from $66 million in 2021.
  • Securing $75 million in a Series E funding round in 2022, the company has amassed a total funding of $275 million.
  • Continuously expanding its services, it recently introduced the UrbanClap Care program, offering health and wellness services to customers.
  • Partnering with Swiggy, India’s largest on-demand food delivery platform, customers can conveniently order food while booking services on the app.
  • Leveraging artificial intelligence and machine learning, the company strives to enhance service quality by analyzing provider availability, preferences, and feedback.
  • The introduction of “My UrbanClap” enables customers to create personalized dashboards, manage bookings, and receive timely notifications.
  • A dedicated customer support team is readily available to address inquiries and swiftly resolve any issues that arise.

Benefits of Using UrbanClap

Using Urbanclap has many advantages that customers can enjoy. Some of these benefits include:

  • Convenience: The platform offers doorstep services, which means customers don’t have to worry about traveling to a service provider’s location.
  • Time-saving: It saves customers time by providing quick and efficient services.
  • Reliable: Service providers are vetted, ensuring that they are verified, trustworthy, and skilled in their respective fields.
  • Wide range of services: The platform offers a diverse range of services, covering categories such as home services, beauty and wellness, repairs, events, and more.
  • Quality assurance: Services come with a quality assurance guarantee, ensuring that customers get the best possible service.

Different Services Offered by UrbanClap

The company offers a wide range of services that cater to different needs. Its categories include:

Home Services

Various home services are provided, including:

  • Cleaning services: This includes deep cleaning, bathroom cleaning, kitchen cleaning, and sofa cleaning.
  • Appliances repair: Services cover refrigerator repair, washing machine repair, AC repair, and more.
  • Home painting: Customers can hire professional painters for re-painting or fresh painting of homes.
  • Pest control: Reliable and safe pest control services are provided.

Beauty and Wellness

A variety of beauty and wellness services are available, such as:

  • Salon at home: Customers can avail of salon services at home, including hair cutting, spa treatments, and makeup services.
  • Yoga and fitness classes: Experienced and trained fitness trainers can customize workouts according to the customer’s needs.
  • Dietitian and Nutritionist: Experienced dietitians and nutritionists cater to a range of different needs and requirements.


The platform handles repairs for various appliances such as:

  • Mobile phone repair: Customers can get their mobile phones repaired at home.
  • Laptop and computer repair: Trained professionals can repair different laptop and computer issues at home or office.
  • Water purifier repair: Water purifier repair services are provided by trained professionals.


Event planning is catered through different services such as:

  • Photography: Professional photography services are offered for personal and business events.
  • Makeup artist: Skilled makeup artists are provided for weddings, parties, and other events.
  • Event planners: Customers can avail of the expertise of event planners for successful events.

The Business Model

The platform operates as a two-sided marketplace model, connecting service providers with customers. Its revenue model is based on a commission-per-service basis. Once a customer books a service, the service provider completes the job, and UrbanClap takes its commission.

The company’s business model focuses on creating a reliable market space that connects customers with verified, smart, and skilled service providers. The platform aims to bridge the gap between service demand and supply. This approach ensures transparency, trust, and convenience for both service providers and customers.

Key Features of UrbanClap

UrbanClap offers several distinct features and functionalities that set it apart from its competitors. These include:

  1. Easy booking process: The user-friendly app and website make it simple for customers to book services with just a few clicks.

  2. Thorough vetting process: All service providers are rigorously vetted to ensure high-quality service for customers.

  3. Fixed pricing: Upfront pricing is provided for all services, giving customers transparency and clarity.

  4. Multiple service categories: A wide range of services is available, catering to various needs, from home cleaning to wedding planning.

  5. Proactive customer support: The dedicated customer support team is always available to address any questions or concerns, ensuring a smooth experience for all.

How UrbanClap Works

User Acquisition

The company employs various strategies to acquire users and expand its customer base. These include:

  1. Digital Marketing: Investments are made in digital marketing to reach the target audience through social media platforms, emails, Google ads, and other online advertising channels.

  2. Referral Programs: Existing customers are encouraged to refer the platform to friends and family through a referral program, which offers discounts on future bookings.

  3. Partnerships: Collaborations with other companies and influencers are formed to expand reach and target a wider audience.

Service Provider Onboarding

The platform follows a meticulous process of onboarding service providers. The process includes:

  1. Application: Service providers submit an application and undergo an assessment against benchmark standards, ranking them based on eligibility.
  2. Interview: Selected providers undergo an evaluation by the team, assessing communication skills, service experience, and personality traits.
  3. Verification: Documents and background verification are conducted to gauge authenticity and work experience.
  4. Sign up: Verified providers sign up and are onboarded onto the platform.

Service Delivery

UrbanClap ensures smooth service delivery between customers and service providers through several means, including:

  1. Real-time updates and status: Updates are sent to customers and service providers to keep them informed about the status of their bookings.
  2. Customer Support: The dedicated customer support team is available to assist customers with any concerns or issues.
  3. Rating and review system: Customers can provide ratings and reviews to share their experience with the service provider, promoting quality service.

The Revenue Model

UrbanClap’s revenue model revolves around commission fees and premium memberships. Whenever a professional acquires new business through the platform, the company takes a cut of the transaction. Premium memberships are also offered to professionals for increased visibility and search result placement.

Additionally, the company is exploring other revenue streams, including sponsored listings. This allows companies to pay for higher placement in search results, enhancing their visibility to potential customers.

Commission Fees

The commission fees charged by the company vary based on the service provided, ranging from 5% to 20% of the total transaction value. For example, if a customer books a beautician for a $100 service, the company would take a commission of $5-$20, depending on the specific service’s commission fee.

Premium Memberships

To provide professionals with greater visibility, premium memberships are available. These memberships offer prominent search result placement, special badges highlighting experience, and reduced commission fees. Professionals pay a monthly fee to access these benefits, with prices varying based on service and location, starting at an average of $9.99/month.

Sponsored Listings

Currently in beta testing, sponsored listings allow companies to pay for improved exposure in search results. In exchange for higher placement, these companies pay a fee to the platform.

Challenges and Opportunities

UrbanClap’s growth has been impressive, but scaling any service industry business presents challenges. First, maintaining a consistent flow of high-quality professionals is crucial for customer satisfaction. Second, as a marketplace, ensuring the satisfaction of both customers and professionals is essential for sustained growth.

However, the company is well-positioned to overcome these obstacles, thanks to its extensive network of reliable professionals and a loyal customer base. Recent funding of $75 million will further enhance the customer experience, expand the platform, and increase the range of services offered.

With a focus on continuous innovation and customer satisfaction, the company is poised to meet the increasing demand for online services and continue its growth trajectory.

UrbanClap's Competitors

UrbanClap operates primarily in the online services marketplace industry. Competitors include large marketplaces such as Amazon Home Services, TaskRabbit, and Thumbtack, as well as smaller start-ups like HomeX and Housejoy.

Moving forward, the company will need to focus on differentiating itself from competitors, possibly by expanding services or enhancing the customer experience.

Large Marketplaces

Amazon Home Services is a major competitor with a reputation for excellence. To compete effectively, the company should offer a unique and personalized experience.

Sponsored Listings

Smaller start-ups like HomeX and Housejoy are also competitors, but may lack the resources to scale rapidly. The company can leverage its success in India to expand globally while meeting customer needs.

Marketing Strategies

UrbanClap has been able to attract a wide user base through shrewd marketing strategies that leverage mobile and social media platforms. The focus has been on creating brand awareness through engaging and informative content that educates users about the platform’s benefits. Some notable marketing tactics employed include:

  • Influencer collaborations: Partnerships with influencers in various service categories create authentic content that resonates with their social media followers.
  • Referral programs: Incentivized referral programs reward users who refer friends and family to the platform with discounts and benefits.
  • Search engine optimization (SEO): The website is optimized for search engines to rank highly for relevant service-related keywords.
  • Email marketing: Personalized emails are regularly sent to users, highlighting current offers and new service categories.

Funding and Valuation

UrbanClap has a robust funding history, raising over $450 million to date. Funding rounds have been supported by leading venture capitalists like Sequoia Capital, SAIF Partners, and Vy Capital. The company has also secured investments from strategic partners like Ratan Tata, one of India’s prominent businessmen. The latest funding round resulted in a $225 million raise at a valuation of $2 billion.

Future Outlook

UrbanClap is well-positioned to capitalize on the growing demand for online services in India. Its outstanding growth trajectory in new service categories indicates successful market penetration. Looking ahead, the company plans to expand further into tier-II and tier-III cities in India, where strong growth potential exists. Additionally, it has expanded internationally, with a presence in the UAE, Singapore, and Australia. In conclusion, the company’s ability to provide top-tier services at affordable prices, coupled with innovative marketing strategies, makes it an exciting prospect for investors and consumers alike.


To sum up, UrbanClap is a platform that has transformed the lives of many with its innovative approach to service provision. Its business model leverages the power of technology to create an enabling environment for the local community to access quality services locally. With a vast user base and satisfied customers, It has demonstrated its significance in the service industry.

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Frequently Asked Questions (FAQs)

UrbanClap differentiates itself from competitors in several ways. Firstly, it offers a variety of services compared to competitors that focus on specific trades or industries. Secondly, customer experience is emphasized, and service providers are verified and trustworthy. Finally, cutting-edge technology enhances the user experience, setting it apart from other market players.

UrbanClap’s platform is free for users to access, register, and make inquiries about the services offered. However, users need to pay for the services they render via the platform, and UrbanClap charges a commission on the completion of the service.

UrbanClap acquires users through the use of digital marketing and word of mouth. The platform leverages various social media channels to acquire users, and it also partners with local businesses and service providers to reach users in their areas. Word-of-mouth referrals from satisfied customers also contribute significantly to the growth of UrbanClap’s user base.

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    Rohan Murthy

    Rohan Murthy is a freelance writer and in-house content lead at Zipprr, a custom software development company. With over 7 years of experience, he specializes in writing about business, technology and startups. As the in-house content lead, he creates blogs, whitepapers and webpage content for Zipprr. He has also worked with many other clients as a freelance writer, providing long-form and short-form content.