Urban company revenue model: organising India’s home service marketplace with trust and dignity
Introduction
For years, India’s home services sector was unorganised, plumbers arriving late, electricians charging arbitrary rates and customers feeling unsafe at their own doorstep. Service professionals struggled too, trapped in unpredictable incomes with little respect for their craft.
Urban Company stepped into this gap and did something remarkable: it built a home service marketplace in India that combined technology, transparency and trust. The result? A win-win for customers, workers and the company itself.
Reimagining home services through technology
The Urban company transformed the sector by introducing structures where there was none.
– Verified professionals : Background checks, police verification and mandatory training built a layer of safety and trust.
– Transparent pricing : Upfront rates replaced hidden markups and uncomfortable bargaining.
– App-driven convenience : Simple booking, live tracking and instant reviews brought order to chaos.
This approach didn’t just solve problems; it set a new standard for reliability in urban homes.
The urban company revenue model: fair and sustainable
Behind this trust is a business model that balances growth with fairness.
– Commission-based earnings : Partners pay 8.5%–25% commission per order, with most falling in the 20–22% range. This alone makes up 80–85% of Urban Company’s total revenues.
– Value-based pricing : Charges reflect quality, convenience and assurance, with dynamic rates during high-demand slots.
– Subscription and packages : Regular users benefit from discounted plans and faster services, while professionals access premium visibility.
– Diversified streams : From product/tool sales (like RO purifiers) to training programs and advertising, income flows from multiple channels.
In FY25, this model powered Urban Company to ₹1,144 crore in operating revenue, with profits. A rare achievement for a platform that balances social and financial impact.
What customers gained: safety, quality, convenience
For millions of households, Urban Company has become shorthand for dependable services.
– Assurance of safety : Verified professionals and insurance-backed offerings gave families peace of mind.
– Time saved : Booking and payments became effortless.
– Consistent quality : Active quality checks and reviews raised the bar for service standards.
Average order values reflect this shift:
– Beauty & Wellness: ₹1,500–2,500
– Deep Cleaning: ₹1,200–2,500
– Appliance Repair: ₹800–1,800
– Subscribed/Recurring: ₹500–1,200
What workers gained: stability, growth and dignity
Perhaps the most powerful impact is on professionals who once faced unstable earnings.
– Higher incomes : On average, workers earn ₹26,400/month net of costs. The majority earn around ₹33,962/month, while the top 20% cross ₹42,000/month, with some high performers touching nearly ₹50,000.
– Skill growth : Over 220 training centres provide certifications and constant upskilling.
– Financial inclusion : Insurance, ESOPs and loan access create long-term stability.
– Respect restored : Once undervalued, these professionals now operate as micro-entrepreneurs with career paths.
For many, Urban Company earnings outpace entry-level IT jobs, turning service work into a respected livelihood.
Conclusion
Urban Company’s journey shows how technology can humanise work. Its commission model fuels sustainability, its pricing strategy builds trust and its ecosystem nurtures workers and customers alike.
It didn’t just organise a chaotic sector, it gave it dignity, efficiency and meaning. For India, that’s more than a marketplace. That’s a movement.
