The start-up space all around the world has been witnessing enough hustle bustle lately. Over the past two years, the global start-up economy generated $2.8 trillion in economic value, an increase of 20% from the prior two-year period. In the middle of all that is already happening, the leading home service marketplace, UrbanClap, announced that it has chosen a new name for itself, as it actively gears up to expand its footprint globally. Rebranded now as Urban Company, the startup would continue to operate as one master app, bringing together its six sub-brands, which too have been renamed as following –
Quite often, a rebranding exercise works wonders for companies, as it re-energizes a brand and opens doors to multiple opportunities. For UrbanClap, will this initiative reap some positive results, we certainly have to wait and watch. For now, the brand aims to connect with more and more audiences globally and this is the reason why it opted for a simpler, more impactful name. Well, Urban Company, surely has a greater universal appeal.
Let us have a look at some interesting facts and figures about the fast-growing startup –
In terms of growth, there is no doubt about the fact that the startup has been treading fast, and there are numbers which serve as evidence. In FY19, the company’s gross revenue had more than doubled to Rs 116 crore, from Rs 46 crore in FY18, clearly a 150% increase. With these growing revenues, the company has managed to keep the operating losses flat at Rs 72 crore in FY19. Looking ahead, the start-up aims to clock revenues above Rs 250 crore for FY20.
It indeed is highly inspiring to see how a start-up which laid its foundation only a few years ago in 2014, has managed to grow its revenues significantly in a short span of time, by merely connecting service providers with consumers.
Some of the reasons for UrbanClap’s remarkable growth have been listed below;
One of the key reasons why UrbanClap rose to popularity over time has been its sheer focus towards providing quality services. The start-up has been undertaking various quality-control and training initiatives to hone the skills and knowledge of all services providers on its marketplace. The home services giant has also launched various training centres, where a gamut of skill-development programs are offered in lieu of the same. Post extensive training, the company selects only those handful of professionals who actually qualify as experts. While in the business, the quality of services providers is constantly monitored through customer reviews, where professionals with a lower rating are removed from the platform. This strong check on quality has instilled greater confidence amongst consumers for using UrbanClap’s services.
UrbanClap had to take that extra step to ensure the safety of its service providers as well as customers. In the home services industry, this turns out to be a critical aspect. Therefore, the start-up follows strict rules and procedures, and conducts a thorough identity and background check of all its service providers before getting them on board. This is usually done with the help of expert third parties, who execute the whole process with extra care. UrbanClap also takes appropriate steps to ensure the safety and well-being of its service providers, as it actively verifies the customer credentials before imparting services.
For service providers, UrbanClap offers a pool of opportunities to earn and grow. Firstly, they are able to get more business without really doing much. As and when the service requests are placed on the platform, they are simply directed to these professionals. Secondly, for each service rendered, 80% of the amount is owned by the service provider, and only the remaining 20% goes as commission to UrbanClap. This arrangement works very well for them, giving almost a 3-4x push to their monthly earnings. Lastly, UrbanClap assists its service providers with the delivery and operations using its automated engines, which takes away another key hassle from their kitty.
UrbanClap did not rush into things at any stage, be it adding services to its portfolio, market expansion, growth, scaling, etc. Rather, it adopted a slow and steady approach, and maintained a clear focus for each phase. For example, 2015 was their year for product market fit and liquidity, 2016 for monetisation and customer experience, 2017 for user and supplier growth, and so on. This careful, well-planned approach helped them grow safely.
UrbanClap was quick to identify the growing pain areas of the busy consumer, who is left with very little time to perform household related mundane tasks. The start-up aimed to address these mounting concerns by diligently designing and delivering simple, reliable services, helping consumers to be at ease.
Needless to say, there has been a surging demand for smart home services over the period of time. Thanks to our rapidly evolving urban lifestyles and the growing digital penetration, the need and market for these services is bound to grow even more in times to come. According to a report, the global Online On-demand Home Services market is expected to grow at a “CAGR of almost 53% with revenue USD 1,574.86 billion” by 2020-2024. The “YOY (year-over-year) growth rate for 2020 is estimated at 32.14%” by the end of 2024.
Globally, though the space has been crowded with competition, with many start-ups making their way in the industry with their unique, innovative offerings and business models over the last few years, the market still holds a large scope and appetite. The continuous influx of investor funds has kept the momentum of the industry alive and kicking.
As the on-demand home services market attains a stronger grip and gears up for a brighter future, there are opportunities galore for entrepreneurs. Still at a nascent stage, the market growth for this segment has just begun, and there is still a long way to go. However, in the end, it all boils to one single thing – how smartly and quickly are you able to establish that deeper connect with the consumers, and how uniquely your solutions will fulfil their needs. The next generation of entrepreneurs needs to watch their market carefully, study the consumer well and create something more promising.
So, are you thinking of putting your foot forward and contribute to this fast-growing market? Get in touch with us. We will help you make the most of this opportunity by designing a distinct home services app for your business.
February 8, 2020