Urban Company Business Model | How does Urban Company Make Money

Urban Company Business Model | How does Urban Company Make Money

Urban Company, the name has made our at-home services so easy. It has revolutionized the way we were using our various services.

Earlier, we had to go out to get our services done. But with Urban Company, we get to enjoy them at home. The services include beauty, spa, repair work, cleaning, and more.

It aims at providing authentic and affordable services to the users. To enable these home services and manage the processes, the company possesses a great business model. Its model ensures the connectivity of skilled professionals with service users.

Let's look at the business model of Urban Company the company involves proper planning, management, and business strategies. This helped them to become one of the most popular startups.

Urban Company - Latest News

January 20, 2022 - Urban Company has launched video medical consultation focusing on skincare. The Gurgaon-based hyperlocal services unicorn has onboarded dermatologists to make free medical consultations for hair and skin issues feasible for women.  

About Urban Company
Founders and Team
Business Model of Urban Company
The Two-Fold Model of Urban Company
How does Urban Company Make Money?
What are the Main Resources of Urban Company?

About Urban Company

The company, found in November 2014, is a home services company. The Urban Company came into existence to connect the local services with technology. It enables the customers to get their required services at home.

Founders and Team

Varun Khaitan, Raghav Chandra, and Abhiraj Bhal
Varun Khaitan, Raghav Chandra, and Abhiraj Bhal

The masterminds behind this startup are Varun Khaitan, Abhiraj Bhal and, Raghav Chandra. They co-founded the company with an early-stage budget of 10 lacs.

Varun Khaitan

Varun Khaitan is an IIT Kanpur alumnus, who completed his Btech in Electrical Engineering and then went on to join Qualcomm as an Engineer. Leaving Qualcomm Khaitan joined The Boston Consulting Group, where he served as an Associate and a Consultant. After serving the role for more than 2 and half years, Khaitan left the company and started up with Urban Company.

Abhiraj Singh Bhal

Abhiraj Bhal is another co-founder of Urban Company. Bhal also has a background in Engineering, and that too in Electrical Engineering from IIT Kanpur, much like the previous co-founder. After completing his graduation Abhiraj opted for an MBA in Business Administration from IIM Ahmedabad. He first joined as a Consultant at The Boston Consulting Group, where he served the role of Consultant for 3 years after quitting which he co-founded Urban Company.

Raghav Chandra

Raghav Chandra, another co-founder of Urban Company, has served as a Software Engineer at Twitter before founding Urban Company, teaming with the other co-founders. Raghav has also founded another company Buggi in the interim. Raghav has interned in a series of companies including Roamware, Infosys SETLabs, UC Berkeley and Yelp Inc. after completing BS in Computer Science and Engineering from the University of California, Berkeley.

Urban Company boasts of having a team of 40,000+ trained professionals.

Operating Areas

The Urban Company founded in 2014, is the largest at-home services company in India and UAE. The company operates in Dubai, Abu Dhabi, Sydney, Singapore, and in fourteen cities of India.

Services and Audience

The Urban Company provides almost 100 services now. These include beauty, grooming, cleaning, repairs, home educators, fitness trainers, and many more.

This new-age startup has a solution for almost all our services with one click. These various services have enabled the company to have a broad audience overall.

The main idea of the startup was to enable people to hire any service from the comfort of their homes. Indeed it is doing a great job doing it and has shown amazing growth alongside.

The Urban Company has made a big name for itself in the service industry. It has developed an amazing amount of reliability among the customers.

By looking at all this, a few questions come to our minds. For example- How a startup that started with mere 10 lacs could grow so much? In this uncertain era, how are people even trusting the platform?

All such questions have a simple answer. It is the company’s simple yet super effective business model backed by huge investments.

The company has presently launched another service where it would be offering free medical consultation, focusing on the hair and skin problems of the women. As per the reports dated January 21, 2022, Urban Company has already onboarded some dermatologists to piloy free medical counselling in a few Indian cities. Renowned cosmologist Dr Amit Karkhanis has been roped in by Urban Company to head its medical team.

Business Model of Urban Company

The Urban Company has a straightforward and simple business model. This is to connect the customers with their required services at home. The company helps you to bring in beauticians, fitness trainers, educators, electricians, plumbers, photographers, and many more.

It is a full-stack startup that uses algorithms for automated matchmaking. To make the platform more trustworthy, the company ensures public safety. The company performs the background checks and also police verification of all the service providers.

The Urban Company is growing and gaining customers’ trust with its two-fold business model.

The Two-Fold Model of Urban Company

The Urban Company works on a two-fold model. This involves:

Services with Fixed Charge

Whenever, a person uses the services of hiring a beautician, cleaner, or anything, they get charged from the app. It means they pay for the availed services through the app.

In this way, the company takes a fixed commission from this revenue.

Services without the Fixed Charges

There is a lead generation and sponsored listing. For this, the company charges the experts. The company makes sure that the users do not have to pay till they are satisfied with the services.

There is a process. In this, at first, the service providers have to pay a fee to accept the customer's request. If the professional can satisfy the user and get paid for the services then the monetization will be worth it.

Therefore, the urban company has created a successful business model for itself. It has begun to use the technology of Artificial Intelligence and Machine Learning. This helps the app to discover data insights and patterns of the users. This after all helps the company to know its customer’s needs better.

How does Urban Company Make Money?

There are three ways of how the company generates its money:


The users hire the service providers from the app. When they utilize the services, they pay for them. From this payment, the company gets a commission.

Reverse auction

In this, a particular service provider asks the company for its promotion on the platform. In exchange for the promotion urban company charges money from the service provider.

Ads or Commercials

Various big businesses, manufacturers run their ads on the company’s platform. The company thus gets a fee in exchange for this.

What are the Main Resources of Urban Company?

There are two main and most important resources of the Urban Company. The first is their official website. The second is their application which is available for both Android and iOS.

The resources are made with similar technologies. These help the company in lead generation, promotions, and knowing the customers better.

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The Urban Company has created a huge name for itself in the market. It made this possible because of its simple yet effective planning. The company did not make a complex business model for itself in the beginning and it intends to keep it that way only.

This model helps to bring in cleaners, yoga trainers, educators, electricians, and many more. One can do all this from the comfort of their homes with their smartphones.

The Urban Company’s business model aims to make the connectivity between customers and service providers faster and more efficient.


What is the business model of UrbanClap?

Urban Clap connects users or service seekers to service providers for daily services.

How does urban Company make money?

Urban Company makes money by commissions. They charge a small percentage of the total price of the service to the business owner.

What type of company is the Urban company?

Urban Company is a home services company.

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