Business Model UrbanClap Business Model | Revenue Model | Case Study...

UrbanClap Business Model | Revenue Model | Case Study | Marketing


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I am sure that you all hear about UrbanClap. You might don’t know what is UrbanClap and might think about the Business model of Urban Clap and what is the revenue model of urban clap. So, today in this post I’m going to solve your all problem regarding Urbanclap i.e. How UrbanClap run, how UrbanClap Earn Revenue, etc. Before Business Model of UrbanClap and Revenue Model of UrbanClap let have some knowledge about UrbanClap.

UrbanClap Business Model

UrbanClap Wiki/Bio

UrbanClap is founded by Abhiraj Bhal, Raghav Chandra and Varun Khaitan. Urabclap is founded on 1st October 2014. Now Urbanclap is a leading marketplace for home service in India. UrbanClap currently receives 10,000 orders in a day approx. Mostly orders are from Delhi and Noida. UrbanClap is currently operated in 18 cities of India.(Delhi NCR, Bangalore, Mumbai, Chennai, Hyderabad, Pune, Ahmedabad, Jaipur, Kolkata, Chandigarh, Noida, Greater Noida, Faridabad, Gurgaon, Ghaziabad, Thane, Navi Mumbai and Secunderabad). This is also operated in two foreign countries.(Dubai, Abu Dhabi)

UrbanClap is a platform to make our urban lives more fulfilling to solve our needs in a clap. Hence the name, UrbanClap.  – Says Abhiraj(Founder)

  • What is UrbanClap

UrbanClap is a platform which enables the customer/users to find the services which they want. Services provided by UrbanClap are of various types like Packers and movers, Carpenter, AC service and repair, Pest Control, Yoga trainer, Fitness Trainer, Dietician, Salon at home, Massage, haircut, Electrician, Plumber, etc.

  • How UrbanClap is started

UrbanClap is started in 2014 around 5 years back by three persons Abhiraj Bhal(IIT-Kanpur alumini), Varun Khaitan(IIT Kanpur-alumini) and Raghav Chandra(University of California alumini).

Varun and Abhiraj both know each other as they have completed their graduation from the same college together. After graduation, they also worked in the same company i.e. Boston Consultancy Group. Abhiraj also completed his business studies from IIM Ahmedabad. Raghav went to the University of California for his studies and worked at Twitter after that.

  • Who are Urbanclap competitors

Housejoy, EventXtra, Armut(Home Run), UrbanPro are the Competitors of UrbanClap.



Business Model of UrbanClap

Urban has a very simple and easy business model but this is very effective and well planned. They provide the professionals which you wanted to render a service. For example, if you need an electrician you just need the official app of UrbanClap or you can use the official site to book. This is done through an automated algorithm based on your activity and behavior.

The working of UrbanClapis based on two simple models:-

  • Standardized, blue-collared services

If you want standardized, blue-collared services like plumber, a massage where you just want the job to be done, you can directly book and pay for the services on their app or website.

  • White-collared services

If you want white collared services like a yoga instructor, photographers, etc at that time Urban clap makes the effort to understand what you actually need and what is your budget and they provide the most suited professionals and this is done through an automatic matchmaking the algorithm. This generates more sales and this is the main part of the business.

For safety purpose, they check and verify each professional that they are legitimate /safe or not. For the verification process, they hired a retired Superintendent of police which helps in police verification.

Revenue Model of UrbanClap

The revenue model of UrbanClap is similar to freelancing sites like fiver. UrbanClap use a simple revenue model. Registration of Professionals is free on UrbanClap but once they got an order some percentage as commission is taken(15%-20%).

Now there are two types of Revenue Model of Urbanclap:-

  1. For fixed charge services like plumbing, electrician UrbanClap accept the payment directly from the customer to UrbanClap App and then they transfer the amount to hired professional after deducting their commission based on service.
  2. For services like photographers, interior designers yoga instructors or gym trainer, where charges are not fixed UrbanClap charges the professionals for lead generation and sponsored listing.

In future UrbanClap is going to bring premium listing for professionals which give extra benefits to them and they are going to charge for this premium listing on monthly based.(subscription)

Marketing Strategy of UrbanClap

UrbanClap uses various type of marketing techniques. Marketing strategy of UrbanClap is very good and effective. They uses 2 type of marketing:-

  • Digital Marketing

1. Search Ad

They target their customer through the google ads and hey ate perfectly targeted. They target the persons which can easily converted into their customer.

2. Facebook ADS

UrbanClap use the facebook app to show the ads. They have around 250,000 followers on facebook.

3. Youtube ads

UrbanClap use the youtube to serve ads. Video is King and Urbanclap knows that. Their marketing efforts include DIY Videos and bringing in micro influencers to be part of their video efforts.

4. Influencers on Instagram

Instagram Influncers do a paid post on their feed about Urbanclap and this help a lot. They hire many social media influncers which have a good amount of loyal followers.

  • Traditional Marketing

UrbanEats also uses tv ads and radio for marketing.



UrbanClap Fundings

UrbanClap has received 57 million dollars of investment from 7 investors and in 5 rounds of funding i.e. E

Seed capital is around 1.6 million dollars from 5 investors Saif Partners, Accel Partners, Kunal Bahl, Rohit Bansal.

In June 2015 the first round of funding was held and the company raised 10 million dollars from SAIF Partners and, Accel Partners. In November 2015 in the second round of funding UrbanClap raised around 25 million Dollars from Bessemer Venture Partners, Accel Partners, SAIF Partners.

In July 2017 the company raised another 21 million dollars in Series C round of Funding led by Vy Capital and other investors were Bessemer Venture Partners, Accel Partners, SAIF Partners.

The main investors are Ratan Tata, Vy capital, Bessemer Venture Partners, Saif Partners, Accel.

UrbanClap Website

UrbanClap App

UrbanClap Twitter


UrbanClap is an online platform for customers to scout for the best professionals in the service industry- be it architects, wedding photographers, yoga teachers, educational counsellors or lawyers. Simply put, it connects online users with offline businesses. Their vision is to use technology and smart processes to structure the highly unorganized services market in India and emerging markets. UrbanClap aspires to make hiring a service professional as easy and straightforward as ecommerce companies have made buying products.

If you have any suggestion or doubts regarding UrbanClap Business Model or UrbanClap revenue Model then do comment. If you like this article then do share with your friends on social media.

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  1. Hello, I will like to know how uberclap is solving User Retention problem that is When a customer hires an electrician through UrbanClap, there are high chances of the customer reaching out to the electrician bypassing UrbanClap.


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