In the ever-evolving world of startups, Urban Company (formerly UrbanClap) has emerged as a game-changer in the home services sector. (The company's journey from a dream to become a unicorn in the service sector of India) is quite remarkable. By implementing a forward-looking model of at-home services, Urban Company has not only shaken up the traditional service industry, but has also transformed the way millions of Indians think about and avail home services. Let’s dive into how Urban Company revolutionized India’s service ecosystem and the impact it has had on the common masses.
The Birth of Urban Company
Urban Company was established in 2014 by Abhiraj Bhal, Varun Khaitan, and Raghav Chandra. The trio, who were childhood friends, had previously worked at various companies and had seen firsthand the challenges that arose from accessing reliable home services. The concept of UrbanClap originated from the observation that the home services industry in India was highly fragmented, unprofessionalised, with lack of transparency. The major pain point on consumers' side was the unwillingness of consumers to look for professional at home repairs, cleaning, beauty services, and other daily requirements.
The three founders decided to use technology to build a platform to connects professional with customer. The concept was basic, yet very effective—create a platform that let consumers book at-home services performed by plumbers, beauticians, and others at the click of a button.
Originally incorporated as Urbanclap, the app initially provided simple types of services like homecleaning, repair, and beauty services. The interface of the app has been developed with the goal of facilitating the consumers in their ability to find trustworthy professionals featured with verifiable profiles. Within a short period, UrbanClap became a hit among customers in metropolitan cities, where time and convenience became increasingly important.
The Pivot: Rebranding to Urban Company
In 2020, the company went through a complete rebranding process and, as a result, its name from UrbanClap got shifted to Urban Company. This rebrand was not just about a new name, but about redefining the company’s vision. The founders realized that the scope of their platform extended far beyond what was initially anticipated. UrbanClap has generated a lot of traction in the field of beauty and wellness, particularly for women looking for salon services at home. This realisation led to the choice to broaden and concentrate on the development of a more premium and robust offering in a range of categories.
Take the name change as an example, it represented the company's long-standing ambition to realize itself as a one-stop shop of at-home services, going way beyond cleaning and beauty, including plumbing service, appliance repair and even fitness training. The new name, Urban Company, more accurately described their expanding array of services and the professional quality they were determined to provide.
The Path to Unicorn Status
The rapid climb of Urban Company from a start-up to a unicorn (a privately held company with a value above $1 billion) was hastened by a combination of serendipity, innovation, and customer-orientated approach. The company quickly became a favorite among urban dwellers for several reasons:.
Trust and Reliability: Trust was one of the major problems in the home services business. Customers would frequently have doubt on the quality and reliability of service providers. Urban Company addressed the problem by implementing a strong background check for the professionals providing the services. All professionals are obliged to undergo background checks and skill tests before becoming eligible to be able to provide any services via the platform.
Convenience: Consumers no more had to look for trustworthy service providers. Urban Company (UC) made booking a service, selecting a professional, and scheduling time intrusively easy with a few clicks. Making home-services more accessible was the focus and the model of on-demand operation generated interest among busy people and working families.
Skilled Workforce: Urban Company invested heavily in training its professionals. Although most of the other players on the market based their operations on unskilled labor, Urban Company based its operations on the development and upskilling of its staff by means of training schemes. This would instill confidence in customers that the service they receive is of good quality.
Technology-Driven Solutions: The founders took a tech-first approach to solve real-world problems. Features of the Urban Company's app included easy service scheduling, payment arrangements and reviews. Implementing technology through all stages of the service experience, from booking to post-service experience feedback, the platform evolved into a credible home service provider.
Expansion into New Markets: The company rapidly scaled out throughout the country of India, serving tier-1, tier-2 and even tier-4 cities. This growth enabled them to serve a significantly wider customer group which earned them the status of a unicorn.
Last year, Urban Company with its Series F funding round, collected 2 billion, achieving unicorn status in record time.
Behind the Scenes: Hidden Stories and Unpopular Facts
Although the public success of Urban Company is well documented, there are a few less-discussed factors in the company's career that it is worth elaborating on.
Overcoming the Initial Struggles: In the early days, UrbanClap struggled to attract customers, as many Indians were accustomed to traditional methods of hiring service providers. In fact, the founders had to go door-to-door in several localities to introduce their services. This door-to-door method not only created trust and credibility, a key first step to achieve later, but also created a basis for future development.
Focus on Upskilling: Among the company's more secret activities was its work in professional upskilling. In interviews, the founders have mentioned that the company invested heavily in training its workforce—be it beauticians, electricians, or plumbers. This move helped UrbanClap (now Urban Company) differentiate itself from competitors, who often relied on untrained or low-skilled workers.
Challenges During the Pandemic: Like many businesses, Urban Company faced challenges during the COVID-19 pandemic. With lockdowns in place, demand for services such as cleaning and beauty treatments dropped significantly. However, the company pivoted by offering services for sanitization and safety, including deep cleaning and disinfecting services for homes and offices, which helped them ride out the tough period.
Shifting Focus to Premium Services: The first company initially served at low prices, and then its strategy changed with the offer of services high in price, particularly across categories such as beauty or wellness. This pivot was based on customer feedback, as many wanted quality services at home but were willing to pay a little more for a professional and hygienic experience.
Impact on Society and Changing Mindsets
Urban Company has had a profound impact on how Indian society thinks about home services. Historically, Indians had been dependent on care providers who lacked the professional expertise, and hiring a "professional" to provide domestic services was not the norm. Urban Company changed this mindset by positioning itself as a platform that offered not just affordable but reliable and quality services.
The company also defied social norms, especially in beauty and wellness field. Several women today go for salon services in the safety and comfort of their homes because of Urban Company, which has established a safe, convenient, and hygienic avenue for individuals to have their beauty services even without leaving their homes. Urban Company, in the midst of a society historically resistant to home-based services, helped change attitudes.
Conclusion
The story of Urban Company is a story of perseverance, of innovation, and of commitment to making a practical difference in people's lives. Having started as a small UrbanClap, the company has gone on to become one of India with revised home services. By providing reliable, professional, and accessible services, Urban Company has changed the way millions of Indians approach home care.
Supported by technology, upskilled labour, and a customer orientated approach, Urban Company remains at the forefront of shaping the home services landscape. As it develops and expands, it's evident that Urban Company is not only transforming the perceptions of Indian people regarding home services, but also shaping the future of the industry in terms of standards.