UrbanClap is also among the startups which have exponentially grown in India, and seeing major acknowledgement from the people. In this #knowthestartup series, second story after swiggy, we are examining how UrbanClap started, revenue they genaerate, business model and competition they face.
1.How UrbanClap Started?
UrbanClap started 4 years back in 2014 by Abhiraj Bhal(IIT-Kanpur alumini), Varun Khaitan(IIT Kanpur-alumini) and Raghav Chandra(University of California alumini). UrbanClap focuses on providing services- plumber, carpenter, tutor, beauticians, yoga instructors all at home. They started in Banglore and now have expended to all the major cities in India and also in Dubai. Almost an year back UrbanClap raised $21M from the investors. UrbanClap has also acquired handyHome, goodservice companies, also has a huge backing from Ratan Tata as their investors!
2.UrbanClap revenue model:
UrbanClap model is pretty similar to what freelancing does, that is professionals can register themselves and they need to bid to do a job. Once job has been given to you, UrbanClap charges 15-20% commission fee.Now,lets talk numbers:
Number of orders in a day:10K
avg. cost of order: 3K
Revenue of 1 year: multiplying the factors with 15% commission, dividing by 65 for dollars and multiplying by 365 for 1 year is around $25M
3.Major Competition &challenges:
UrbanClap has its own share of difficulty as the only way they verify any professional is through their documents , photos and certificates. Which provides more credentials than freelancer, truelancer or Upwork, but still has received thousands of complaints for poor service as anybody can come to the house, and obvious security concerns.
The bidding system also has its share of disadvantages as professional needs certain amount of credits to bit and you need to pay to get credits, is in itself has many challenges!
Also, urbanClap has only 50K downloads, and mechanism of blacklisted professionals is not very efficient!
So, this was ours brief Analysis on UrbanClap, an Indian Startup ready to take on the world!You can read our analysis on swiggy revenue model here->http://engineerdiaries.com/know-the-startup-swiggy-startup-story/