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BBA Minor Project

This document provides an overview of home services in India. It discusses the introduction of home services and the various types of services provided, including repairs and maintenance, installations, and home improvements. It also discusses the growth of the online home services industry in India and the impact of COVID-19, which has led to increased demand for contactless home delivery services. Key players in the online home services market in India are also mentioned.

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Manya Khanna
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© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
144 views

BBA Minor Project

This document provides an overview of home services in India. It discusses the introduction of home services and the various types of services provided, including repairs and maintenance, installations, and home improvements. It also discusses the growth of the online home services industry in India and the impact of COVID-19, which has led to increased demand for contactless home delivery services. Key players in the online home services market in India are also mentioned.

Uploaded by

Manya Khanna
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 60

Table of Contents

Contents Page No.


Student Declaration ii
Training Certificate iii
Acknowledgement iv
Executive Summary v
Chapter 1 – Introduction 1-13
Chapter 2 – Company Profile 14-32
Chapter 3 – Research Methodology 33-37
Chapter 4 – Data Analysis and Interpretation 38-53
Chapter 5 – Conclusions and Suggestions 54-55
Bibliography
Annexure
CHAPTER 1:
INTRODUCTION
TO THE TOPIC
HOME SERVICES INDUSTRY IN INDIA

Home services is a term that is used encompasses various intangible


assets that are provided by businesses for residential homes. There are
several businesses that are provided by home services that span across
various sectors of business such as repairs and maintenance,
installations, home improvement, and others. As the number of
services that can be provided by the home service market increases,
the scope, and therefore the industry of home services is growing.
With the increase in the adoption of technology comes the increase in
the online as well as mobile booking services. Home services are
essentially a more modern and simplified way to buy as well as
schedule professional services.

Applications of home services include services such as construction,


interior design, electricity, plumbing, non-HVAC home applications,
gas and more. From the consumer’s point of view, home services are
an attractive service model as it is timesaving for the consumer. The
“Global Home Services Market” is split into four segments, i.e., on
the basis of repairs & maintenance, installations, by segment and by
geography. These segments give an overview of the market and offer
a qualitative and quantitative market study of the product/service.

The opportunity for on-demand home services in India is huge, but


effectively tapping it requires far greater organization on the supply
side via an integrated, full-stack services approach to build customer
demand and loyalty.

The demand for platforms that connect people with local services has
been increasing consistently in India. Today, there are so many
options available online/offline, under home services. Audiences are
shedding conservativeness and are starting to warm up to the idea of
such services, fulfilling their daily household demands.

As the number of services that can be provided by the home service


market increases, the scope, and therefore the industry of home
services is growing. With the increase in the adoption of technology
comes the increase in the online as well as mobile booking services.
Home services are essentially a more modern and simplified way to
buy as well as schedule professional services.
The recent growth of the adoption of home services can be in part
attributed to the evolution of the real estate and building cluster where
physical facilities are considered a part of a service system. The
advent of new technology coupled with the increasing awareness of
services that can be provided in home services are aiding in the
growth of the market. Some of the main reasons for the introduction
of home services were the service it provides to the inhabitants of a
home as well as the overall cost efficiency of the provision of these
services for the service provider.

COVID-19 IMPACT UPDATE ON HOME


SERVICES INDUSTRY IN INDIA

In the COVID-19 crisis period, where public places rarely witness


‘public’ presence, it is widely accepted that a lot of out-of-home
consumption will move inside the house. Across merchandise
categories, customers are now far more prone to give ‘touch and feel’
a break in favor of ‘contactless delivery’.

The post-lockdown period has seen a fast rebound in core segments of


beauty & personal care and repairs & maintenance. Apart from these,
home cleaning and disinfection have opened up new business
potential post-COVID.
• On-demand home services has seen a visible surge over the past few
years, largely led by increasing urbanization and disposable incomes,
rise of the nuclear family, growing demand for various services and
convenience and paucity of time. Post-COVID, the demand equation
could prove even more lucrative

The COVID-19 Pandemic which resulted in lockdown across the


world and business were forced to run their activities by keeping the
Social Distancing in Mind to reach out to the customers. The sudden
or drastic change in the business approach due to the pandemic has
resulted many of the players in the home service industry stop their
business activities or have seen the drastic decline in their business till
they are accustomed to the new approach of doing the business.

ONLINE HOME SERVICES


The opportunity for on-demand home services in India is huge, but
effectively tapping it requires far greater organization on the supply
side via an integrated, full-stack services approach to build customer
demand and loyalty.
• Customer propensity towards in-home delivery in pandemic times is
a major positive for on demand home services providers like Urban
Company, Quikr, Housejoy and MrRight.

• The post-lockdown period has seen a fast rebound in core segments


of beauty & personal care and repairs & maintenance. Apart from
these, home cleaning and disinfection have opened up new business
potential post-COVID.

• On-demand home services has seen a visible surge over the past few
years, largely led by increasing urbanization and disposable incomes,
rise of the nuclear family, growing demand for various services and
convenience and paucity of time. Post-COVID, the demand equation
could prove even more lucrative.

• However, the major constraints are on the supply side – relatively


unorganised nature of the industry and difficulty in meeting customer
expectations while managing unit economics

When you extend this analogy to services, it gets even more


interesting. Times are dire for professions like barbers, beauty
specialists, gym & yoga trainers, etc. Home services definitely do not
compensate for the loss of physical in-store business, but can serve as
a vital revenue stream in the present time. This is a major positive for
the on-demand home services market in India, let by the likes
of Urban Company, Quikr, HouseJoy and Mr Right; who provide
them with vital avenues to retrieve lost business.

The present generation constitutes the largest consumers of the online


on-demand home services since they are also the largest consumers of
the Internet. The busy lifestyle of the consumers is inducing them to
prefer services right on demand will result in a surge in the market’s
growth in the coming years.

The growth of this market is also triggered by the growth and


accessibility of the smartphone market by which the customers
acquire information and book services. The on-demand home
services bridge the gap between the real world services and instant
online services to provide efficient services. The on-demand home
services can be handyman on-demand, cleaning service app, chores
app, home maintenance services and on-demand cleaning services.
Since the consumer’s loyalty is dependent upon the service received,
the service providers have the need to maintain good quality service
consistently.

On-demand services with its speed and convenience are definitely


accelerating trade and increasing profitability for businesses. It has
totally overhauled the traditional business methods and techniques,
with its immediate resolution to every problem that you may probably
face.

The on-demand economy has created an entirely new section of


workers that is somewhere between self-employment and working for
a specific company. This section was born out of the inefficiency that
existed due to gaps between the services desired and the resources
available. The on-demand home services prove to be quite resourceful
and affordable, thus making it easy for customers to adopt and highly
efficient for the businesses.

OBJECTIVES OF ON-DEMAND SERVICES:

 To reduce time
 Easily available best Vendors on one click
 Easy to use
 Reduce Burden of finding service provider

To reduce burden in finding in-house solutions for the services, the


proposed system provides several services by providing service
specialists at your doorstep in one click. A systematic mobile
environment to system clients offers ease in accessing our services in
a more comfortable way. With well qualified and background
demonstrated professionals we make all your home cleaning,
plumbing, furniture maintenance, electrical works, appliance repair,
house painting, vehicle service and many other services to be done in
a click anytime from anywhere as easy as available. In Future the
system can have prolonged by adding the services such as mobile and
computer repair, laundry services, catering services and many more.
OFFLINE HOME SERVICES:

The concept of offline home services is traditional. In offline home


services, there are physical channels which are essential for customers
to provide with their services. Unlike online home services, offline
home services are not able to provide customers with two different
services.

An offline business either sells physical products in a store, or


services that are limited to a geographical location. An electrician or a
plumber, for example, has to travel to visit their customers’ homes in
person, rather than offering online services.
Home Services capitalizes on the convenience factor, one of the
greatest constraints plaguing this sector. In countries not that tech
savvy, the time factor becomes apparent. Getting a repairman, or a
specialist to one’s house is not the convenient an affair – especially
when urgent repairs and needs are a concern. Most of these
contractors are not really part of a grander database, and it is only
with the rise of the smartphone that we have seen services become
more flexible and accessible.

While in many developing countries, the labour may be relatively


cheap, the story is quite different in the developed nations. The fact
that most home services agencies tack on the convenience and
manage to not be the most expensive service out there makes up for
their costs – but just barely, depending on what model one follows.
Most crucial factors in the home services industry is skill, which
differs from one repairman to another. This is doubly true of intricate
jobs and certain ones that require aesthetic sensibility. The on-demand
agency here replaces word of mouth reliability with digital ratings and
user feedback, creating a network that was more powerful than the
ones before.
Most of the companies which bridge this inconsistency, where they
try providing a wide amount of services which also are instantaneous
in the delivery. They also deal with a lot of problems which involves
meeting a very finite supply of professionals , sometimes they fail to
meet the demand and moreover, there is an issue of trust that often
accompanies strangers coming into your house .
MARKET SEGMENTATION

Global Home Services Market: Segmentation Analysis


The Global Home Services Market is classified on the basis of Deployment, Home
Improvement Type, Repairs & Maintenance, and Geography.
Home Services Market, By Deployment

 Online
 Offline

Based on Deployment, the market is bifurcated into Online and Offline. Offline accounted for
the largest market share and is projected to grow during the forecast period. Online was the
second-largest market. The concept of offline home services is traditional. In offline home
services, there are physical channels which are essential for customers to provide with their
services. Unlike online home services, offline home services are not able to provide
customers with two different services.

Home Services Market by Home Improvement Type


 Construction
 Interior Design

On the basis of Home Improvement Type, the Global Home Services Market has been
segmented into Construction and Interior Design. Interior design accounted for the largest
market share and is projected to grow at the highest long term CAGR during the forecast
period. Construction was the second-largest market. Interior design is a wide field that
consists of tasks, consisting of abstract development, area planning, site verification,
programming, research, construction administration, and design execution. Interior designers
create functional, comfortable, and beautiful interior areas by analysing area requirements
and selecting decorative things along with colour schemes, lighting, and materials.

Home Services Market, By Repairs & Maintenance

 Electricity
 Plumbing
 Gas
 Heating
 Ventilation
 Air Conditioning
 Non-HVAC Home Appliances
 Handyman
 Others

On the basis of Home Improvement Type, the Global Home Services Market has been
segmented into Electricity, Plumbing, Non-HVAC Home Appliances, Gas, Heating,
Ventilation and Air Conditioning, and Others. Electricity accounted for the largest market
share and is projected to grow during the forecast period. Home services offer simple and
easy way to deal with home repair of electrical lines in order to provide fast and reliable
emergency repair services. Using online or offline mode of home service, one can easily fix
an appointment with an electrician.

Home Services Market by Geography

 North America
 Europe
 Asia Pacific
 Middle east and Africa
 Latin America
On the basis of regional analysis, the Global Home Services Market is classified into North
America, Europe, Asia Pacific Middle east and Africa, and Latin America. North America
accounted for the largest market share and is projected to grow at a long term CAGR during
the forecast period. The dominance is on account of increase in the industries and a
substantial rise in innovations and ideas. Also, an increasing urbanization, rising smartphone
penetration, growing e-commerce platform, and growing millennial population and
homeowners are the other factors which have enhanced this market in the region.

COMPARATIVIE STUDY OF ONLINE AND OFFLINE


HOME SERVICES:

Now that a lot of the ongoing offline activities in our society such as shopping
of groceries or even communication are taking a dive and
adapting themselves in a digital dependent world.
The working sector is also evolving really fast and making the essential workers
such as carpenters, plumbers, electricians, appliance repairers get a taste of
a more organised structure by bringing them onto an online home service
providing platform.

Here we bring to you a comparison between the service providers online and
offline, to break down to you, the changes that people will witness in both the
scenarios:

Online: People would be able to choose a trusted professional by taking a dip


at the reviews and ratings which makes it so much easier for them to have
decisions that they won’t regret almost every time.

Offline: If the service provider in the market is not someone who has been
appointed for years for a specific task, it might get difficult for you to trust
them. It will only be a word of mouth coming from them and you will have no
choice but to take the risk!

Online: Having an online home service providing platform, it gives you a


good access to find all kinds of services including ac repairs, deep house
cleaning, pest control, house painting and many more without you having to
look around at different places.

Offline: The market is pretty scattered, to find anyone, you always have to ask
around. You will not find every person at one place which makes it difficult for
people to get a specific task done easily and quickly.

Online: A good home service providing platform will have the price set very
optimised, which is sometimes cheaper than the market price. Not just that, they
also provide discounts and offers from time to time, making it easy for the users
to get a very expensive task done like house painting or pest control done at a
very minimal price.

Offline: As in the case of people servicing outside these platforms, often get
into bargaining and sometimes taking more than what is expected. It really gets
difficult to estimate the most reasonable price. Sometimes it works, sometimes
it does not.

Online: Professionalism is guaranteed almost a 100% of the time. Of course,


there are days when they mess up but that’s the beauty of having an online
platform where the good ones take the responsibility to take all your complaints
on their hands and work towards giving you a better experience from the next
time. It is always their first priority!

Offline: If someone is coming to your home for the first time, it is very difficult
to judge if they are going to provide you with quality services. Sometimes, they
actually overdo our expectations but sometimes they do not, there is no
guarantee!

With that, we always have relied on the offline providers, we are sure that there
are many who work brilliantly still but we all do agree that a lot of times it
becomes a very tiring task if you are new in the town, shifted places or even got
disappointed with your existing one and need a change, right? There is a need to
organise India’s service place in the market to provide equal and fair
opportunities to people who deserve it!
CHAPTER 2:
INTRODUCTION
TO THE COMPANY

About the Company


Urban Company is the largest home service platform in Asia.
The platform helps customers book professional home
services such as beauty services and massage therapy for both
women and men, cleaning, painting, plumbing, carpentry,
appliance repair, and many more.
This Indian company is present in Singapore, the UAE, and
Australia as well.
It is available in 30 cities in India -- Agra, Ahmedabad,
Bhopal, Bangalore, Bhubaneswar, Delhi NCR, Indore, Jaipur,
Kolkata, Mumbai, Lucknow, Vadodara, and so on -- and 4
International markets -- Abu Dhabi, Dubai, Sydney, and
Singapore. It was launched in November 2014. The main
motive of the company is to empower millions of
professionals world-wide deliver services at home like never
experienced before. This innovative idea was brought up by
three young brains, Abhiraj Singh Bhal, Raghav Chandra, and
Varun Khaitan. This was their second attempt at starting a
business.

Since its launch, the company has evolved immensely, and


currently, it offers services under two verticals – Beauty &
Wellness, and Home Repairs & Maintenance. Service
professionals are closed to 40,000, out of which 35000 are
from India on its platform.
Brief History of The Company

Since its inception just over five years ago, the startup has
steadily diversified its offers portfolio and expanded its
business model to serve a broad customer base across India.
Their approach behind service design has undergone
adjustments based on market dynamics and their own goals,
and it has been carefully designed to drive them to the
forefront of our fast-growing startup ecosystem.

As UrbanClap launched in November 2014, co-founders


Varun Khaitan, Abhiraj Bhal and Raghav Chandra started
with the concept of linking customers to the local services
industry through a marketplace for mobile apps. The idea was
designed to overcome the challenges inherent in India’s
unorganized local services market and to link freelancing
professionals to customers seeking convenience and cost-
saving from home comfort.

At the beginning, the co-founders were all about going big,


rather than going home, particularly as the investors started
showing interest and funds started flowing in. The business
raised 10 crores having begun with only 10 lakh rupees.

In 2015 the founders of SAIF Partners, Accel Partners and


Snapdeal Kunal Bahl and Rohit Bansal were amongst others.
In this phase of its growth, the management of UrbanClap
decided to offer listings and service offerings in a plethora of
fields: from at-home salon services to wedding photography.
A long list of urban needs included the bouquet of services, be
it yoga, interior design, laundry, or repair services.
In the early stages of the startup, the co-founders and their
team were mainly targeted at growing their value proposition,
rather than focusing on simplistic metrics such as a number of
listed professionals or number of regular active users. The
business plan at this point was to diversify offerings, link
users to a broad range of professionals, market the app to the
right demographics (ideally millennials relying on technology
for conveniences) and build market recognizability to be the
go-to startup for all kinds of services needed for a smooth
urban life.

This business model served the economy’s dual purpose: To


the problems of potential consumers and to help them derive
more value from daily needs; and to enable local service
workers (or “micro-franchisees”) to get more work than ever
before. Before such a demand for services existed, these
workers had jobs dependent either on word-or-mouth or by
different intermediaries, such as shops and local brokers.

The introduction of an app-based platform like this also


helped them gain more exposure and draw more consumers
than they would otherwise have had.

When the company picked up speed, more and more users


came to access the services bouquet listed in the app. As a
result, the company became the blue-eyed investor boy,
raising as much as $185 million by August 2019 from leading
investors including Tiger Global and Steadview Capital, and
even celebrated industrialist Ratan Tata as well. As the years
went by, and the money started to come in, UrbanClap
adapted its business model to fit the lessons it had learned
from operations.
Key Components Of
UrbanClap’s Business Model
Brand Statement

To provide instant access to reliable certifications and affordable services to the customers.

Key Resources

 A reliable mobile application


 A super engaging website.

Key Activities

 Simplifying the complex user journey with the help of technologies like artificial
intelligence and machine learning.
 Personalizing the user experience on both the platforms, the application and the website.
 Pricing controls the scheduling.
 Reaching out to Tier 2 cities.
 A reliable marketing strategy for the company.

Cost Structure

 Technological infrastructure.
 Salaries of the employees.
 Expenditure on the marketing efforts of the company.

Key Revenue Sources

 Commissions from the service providers.


 Reverse auction.
 Lead Generation
 Advertisements on the platform.

Customer Relationship Management

 With the help of social media.


 Customer support.
 Review and rating by the customers.
UrbanClap Business Model-
How it Works
Being an online platform, UrbanClap connects internet users with offline workers. UrbanClap
was essentially a search-and-find tool during the initial stages.

Today, however, it has a model that lists professionals, trains them if necessary, and then
connects them to the users in real-time. On the site, users can effectively book regular services.

We just need to check the app, select the services we need, and then schedule service according to
their own convenience. Whereas one location UrbanClap promotes the process of identifying
trained local business professionals; it also supports service providers by removing intermediaries
and allowing them direct access to consumers.

The business model of UrbanClap


works in two-ways.
1. Fixed Charged Services

For plumbing, electrical work for home maintenance, the organization accepts the money from
the app and then charges its dues to the hired assistance.

They cut a different fee off the collected funds.

2. Services Without Any Fixed Charges

The company is paying lead generation and funding listing to the experts.

The customers are not charged right away. They know the operation. The specialist shall pay a
fee for approving the order. If the expert is able to persuade the customer to purchase the service,
then monetizing is a success.

Five options are given to the user from which to choose the most comfortable choice. If the
service provider’s profile is not shown, he earns payable credit. If the algorithm is successful,
then less work must be performed by the user.

Working Of UrbanClap’s Business


Model
Service Receiver’s End

 Using the app, users can go using a list of resources and select the correct one, based on
their requirements.
 UrbanClap’s business model allows the customer to select a specific service; they can
choose from a range of choices for one product. The option is usually based on a user’s
budget.
 After purchasing the kit, the customer must pick a date and time for the appointment.
 The application enables users to test the service provider and its assets. The presence can
be assured by visiting the visitor’s page.
 Payments are made using advance or COD (Cash On Delivery).
 Users rate the app and review them.

Service Provider’s End

 The app has a dual purpose-one for the individual and one for the specialist
 The practitioners in that field provide a notice when a service is requested. Whether they
embrace or they reject it.
 UrbanClap’s business model is structured to allow the professionals to evaluate their job
obligations and to approve or reject the request for service accordingly.
 When the request is approved, alerts are received from the customer and provider to
validate the booking.
 The service providers are fined if any they back out.

Expansion Of UrbanClap’s
Business Model
The UrbanClap model has been very popular in the ten Indian cities in which it operates, and
some 20,000 service professionals have been onboarded so far. In addition to the current source
of commissions from hired service staff it also launched a new revenue channel in the first few
years. This second revenue source came from lead generation and funded expert listings. The
company paid a fee for enhanced freelancers exposure should their services be viewed and
monetized through the platform. Through widening its activities, it has succeeded through
gradually raising its sales to 116 crores in the fiscal year of 2019.

Notwithstanding these high sales, however, the company has yet to hit the break-even, as they’ve
made 72 crores of operating losses last year.

Such an unreflective development and thirst for success, as I’ve written before, can potentially
undermine sustainable startup success. It is a problem many Indian businesses are grappling with
and trying to figure out the right strategy for foreign expansion to compensate for the losses.
While it can be difficult to formulate the best combination of foreign activities, UrbanClap seems
to have struck the nail on the head in preparing the expansion overseas. The business launched
on-demand services in Dubai, the United Arab Emirates in 2018 and the following year it
followed up with the establishment of a shop in Abu Dhabi.
It has launched services recently in Australia, too. The decision to move to the UAE was an
important one, given the demographics available in the region. The region ‘s large Indian
population was a strong reason for launching operations there, though cost considerations made it
a viable move too. Customers in the UAE are less price-sensitive, so services are priced at 3 or 4
times the Indian prices, with more or less the same costs. Motivated by a similar idea was the
switch to Australia too.

Though it has increased the field of activities and the size of the population served, however, the
company has opted to cut back on the broad variety of deals it has put out on its website so far. In
October 2019, UrbanClap was confirmed to be cutting back on non-core services including
wedding photography and event management, while concentrating on home and beauty offerings
that make up the largest portion of its revenue. The company also launched masculine grooming
services in November 2019, delivering men’s salon products in the comfort of their homes.

Revenue Model Of UrbanClap


UrbanClap uses a four-way approach when it comes to earning money. This lists two categories
of options, one being the booking section and the fixed pricing services accounts, and the other
being the non-booking or variable pricing services.

The business takes two strategies focused on the same, to bring capital to the table.

 Commission Model

UrbanClap generates 85 percent of its overall revenue by subscription. They charge some
percentage of the total price of the service to the business owner in the commission-based
process.

In this way, they support all customers by providing them with fast and reliable service.

Depending on their job, they demand specific commissions from each vendor or servicemen.
Therefore, the more work they have done, the more reward they get from providing home
services.

 Reverse Auction

UrbanClap has supported the strategy of charging the specialist for lead generation and listing for
the second group (photographers, interior designers, or yoga instructors). It’s sort of like a reverse
auction. Through this method, the customers are not specifically booking the service. Instead,
they spend time in their awareness of the operation. To approve the request a specialist must pay
a fee.

Monetization here is based entirely on the ability of the specialist to convince the customer to
book the service. UrbanClap introduces the user to five experts, who may vote for one after their
assessment. When a professional’s profile isn’t presented, the professional gets his credit paid
back. Here’s where the algorithm for matchmaking comes in. The better the algorithm here the
lesser is the work to be done by the customers.
 Lead Generation

Lead generation also offers a good way to generate income. But the key source of revenue
generation for UrbanClap is by commissioning charging. The customer defines the requirement in
lead generation. Accordingly, either the client can contact the aforementioned experts or they can
contact the client.

In this way, UrbanClap is giving rise to serviceman customers looking for a specific service. With
this, UrbanClap charges to the lead generation from professionals and servicemen.

 Advertisement

Besides all the above-listed ways of earning money, there is another way of earning more money
which is – advertisement. Businesses, suppliers, and providers use the UrbanClap platform to
display their advertisements in return for the company’s advertisement fees.

Marketing Methods Used By


UrbanClap
To look different from other companies, Clap hires various styles of marketing skills based on
their urban services. This way, getting their focus makes way for the mind of the consumer.
Many of the approaches used for the advertisement are:

 Basic PPC or Search Ads

The main purpose of an advertisement is to lead you or your potential customers to wherever you
or they want to or need to go. And Google search ads allow you to do just that. You can see
their search ads on the browser if you enter some keywords related to their website.

 Social Media Advertisement

Quick every user of the Internet is on social media sites. It’s a very good way to reach out to the
public. They’re trying to hit every potential customer they can by using social media ads on
Facebook and Instagram.

 Video Advertisement On Platforms Like YouTube

UrbanClap has been posting very touching and interesting videos to catch the audience’s interest
in soothing their lifestyle through UrbanClap. Thus, this is another way how they are able to
increase their customer base manifolds using YouTube advertisements.

 Paid Marketing via Social Media Influencers


Well, the thing about social media influencers is that they have a massive following who
genuinely trusts them. So collaborating with all the social media influencers and asking them to
promote your service is a very brilliant move that UrbanClap has been doing really well.

Rebranding And Their Way


Forward
UrbanClap recently rebranded itself as the Urban Company as a move to help its global
aspirations and create itself as a recognized name worldwide. The rebranding was done to give
the startup a clear, easy-to-remember name, that’s work across demographics and geographic
borders. When the company goes global, having a simple name that is widely appealing would
help it draw customers and get the company’s mission across. This is a startup to make urban life
simpler, and that is the meaning that the new brand name captures.

The effort by UrbanClap to go global comes at an opportune moment as a platform for horizontal
gigs. These gig marketplaces are going to become the flavor of the decade as freelancing takes
hold, and Urban Company is filled with the ability to make the most of it.

Urban Clap is rising higher and higher at a rapid rate. In providing services at home in India it is
one of the most popular startups. To several other cities too, they are extending their facilities. In
addition, they have also been working recently in Dubai to make their services available
efficiently.

There’s no question that Urban Clap is rising, so fast rather than intense competition from other
related on-demand services startups. Regularly they change to provide better services to their
customers. They have also provided an option for chatting so that users can chat with ease with
their selected servants if they cannot call.

Urban Company competitors


Mission and Vision of Urban Company

To empower millions of service professionals by delivering services at-home in


a way that has never been experienced before.
Urban Company Sees Strong Recovery Post Lockdown

Urban Company witnessed emphatic results in business post lockdown and it is


expected that the company will double its revenue in the current fiscal year as
compared to the previous year.

To meet the growth in demand the company has been working hard in
increasing its partner strength.

The co-founder Varun Khaitan said to PTI, “During the lockdown, we focused
on re-imagining delivering safer and more hygienic services (amid the COVID-
19 pandemic) and have made significant investments in technology, PPE
(personal protective equipment), and safety training. Since June, the business
has been on a very positive trajectory and customers have trusted Urban
Company to enter their homes for both their beauty and home service needs.”

After that, he added, “We are seeing strong growth in business despite the
months of lockdown. We have already crossed our pre-COVID peak by more
than 30 percent and are confident of growing 2-folds in FY21 over FY20.”

In these six years, Urban Company has earned the trust of their customers and
due to this COVID-19 pandemic, everyone is now more concerned about
hygiene.

Thus, people now prefer salon services at home. So, they are trusting Urban
Company more because of their professional and hygienic services.

Final Words

While Urban Clap has seen considerable success in recent years, it is just the
beginning. Recently, the App has been using AI-enabled data to better evaluate
a user’s demands. That’s how UrbanClap works, and how the toady industry is
evolving.
Capturing user needs, allocating manpower, and then monitoring everything
under a single roof was a difficult challenge. But with the help of technology,
the creative minds were working on their loopholes. They’ve now fused
methods backed by Machine Learning and AI to codify the way decisions are
made. The right distribution of resources, evaluating who is available and where
intensive processing is needed at the rear end and running it pretty well thanks
to the tech team. With those moderations and improvements, the start-up is
expected to have a long way to go.
CHAPTER 3:
RESEARCH
METHODOLOGY

Research Methodology

Research is one of the most vital part of the survey and is


related to collection of information and knowledge.
Marketing Research is defined as the systematic design,
collection, analysis, and reporting of data and findings
relevant to a specific marketing situation facing the company.
My objective behind this study as a whole was to perform a
comparative study of online and offline home services with
reference to Urban Company

Research Design

A research design is the set of methods and procedures used


in collecting and analysing measures of the variables
specified in the problem research. The design of a study
defines the study type (descriptive, correlational, semi-
experimental, experimental, review, meta-analytic) and sub-
type (e.g., descriptive-longitudinal case study, hypotheses,
independent and dependent variables, experimental design),
and, if applicable, data collection methods and a statistical
analysis plan. A research design is a framework that has been
created to find answers to research questions.

Statement of Problem

The study is being conducted for studying the perception of


general public towards the online and offline home services
and comparing that to each other . It is required to find out
the satisfaction levels based on certain aspects and various
key factors that directly determine the satisfaction levels .
Understanding the problems or hesitations people have in
mind regarding online and offline home services.

Objectives

• To understand the comfort level of people with


technology.
• To anticipate the expectation of people towards
online/offline home services.
• To estimate customers willingness to pay for the
service.
• To assess consumers preference towards
traditional home services and online home services.
• To indicate the technological understanding of
Individuals.

Scope of this Study

The research is applicable in the area of customer preference


towards new technology and openness towards
online/offline home services. The scope of research also
helps in understanding the preferences of the customers. It
would help us study the factors which make an impact on the
decisions regarding online and offline home services. This will
help in analysing the consumers preference towards online
and offline home services.

For this purpose, Delhi NCR was selected and the data was
collected through a structured questionnaire.

Type of Study: Descriptive method

This research is completely based on the description of the


demographic factors that lead to the customer decision
making process and their perception towards online and
offline home services. It is basically valued on the various
parameters which include personal details of customers,
their occupation, income levels etc. Here the need is to find
parameters which describe the consumer satisfaction levels
most effectively.

Sources of Data Collection

The source of data is Primary data. Primary data is collected


with specific objective, especially to address the research
problem. The data is gathered by distributing a questionnaire
to the people chosen beforehand (Biased Sampling).

Sample Size

The sample size for the study is 30 respondents.

•Probability Sampling is a sampling technique in which


sample from a larger population are chosen using a method
based on the theory of probability. For a participant to be
considered as a probability sample, he/she must be selected
using a random selection.

Some of its type are :

Simple random sampling: as the name suggests is a


completely random method of selecting the sample. This
sampling method is as easy as assigning numbers to the
individuals (sample) and then randomly choosing from those
numbers through an automated process.

Stratified Random sampling: It involves a method where a


larger population can be divided into smaller groups, that
usually don’t overlap but represent the entire population
together. While sampling these groups can be organized and
then draw a sample from each group separately.
Cluster random sampling: it is a way to randomly select
participants when they are geographically spread out. For
example, if you wanted to choose 100 participants from the
entire population of the U.S., it is likely impossible to get a
complete list of everyone. Instead, the researcher randomly
selects areas (i.e. cities or counties) and randomly selects
from within those boundaries

•Non-probability sampling is a sampling technique where the


odds of any member being selected for a sample cannot be
calculated. It’s the opposite of probability sampling, does not
involves random selection and relies on the subjective
judgment of the researcher. Some of its type are :
Convenience Sampling: as the name suggests, this involves
collecting a sample from somewhere convenient to you: the
mall, your local school, your church. Sometimes called
accidental sampling, opportunity sampling or grab sampling.
Haphazard Sampling: where a researcher chooses items
haphazardly, trying to simulate randomness. However, the
result may not be random at all and is often tainted by
selection bias.

Purposive Sampling: where the researcher chooses a sample


based on their knowledge about the population and the
study itself. The study participants are chosen based on the
study’s purpose.

• So, in this report Convenience Sampling from the


population was used as a sampling technique. All are
selected according to convenience. This technique was used
so that data could be collected swiftly and begin the
calculations. Very little preparations were needed to use this
technique for collection. The data was readily available to
collect and technique was found cost effective.

Tools

The tools used for analysing data are rating method; graphs,
pie charts etc. Questionnaire is distributed to the individual
respondents and special care has been taken to make
him/her feel comfortable so that, he/she could answer all the
questions. This method is followed to get unbiased answers.

Techniques of Analysis

The data collected from the customer are analysed by


statistical tools by drawing tables and graphs, Interpretation
were drawn on a marketing concept and conversation. Based
on the respondent’s choices findings of the research were
driven and recommendations were made

Limitations
 The consumers were very reluctant to answer the
questions.
 Lack of previous research studies on the topic.
 The study cannot be concluded completely with
such a small sample size
 Time and resources constraints.
Chapter 4 - Data
Analysis and
Findings
Interpretation :

AGE GROUP NO. OF RESPONDENTS (%)

Below 15 -
15-20 43.3%
20-30 33.3%
30-40 10%
Above 40 13.3%

As youth is more intrigued by new technology, our sample population


is majorly aged between 15-30 years. However, we also have a small
number of respondents from other age groups as well
Interpretation :

GENDER NO. OF RESPONDENTS (%)

Male 56.7%
Female 43.4%
Rather not say/Other -

We can interpret here that the gender of a person is not a constraint


while doing this survey. People of all genders are intrigued by this
service.
Interpretation :

SERVICES NO. OF RESPONDENTS (%)

ONLINE 36.7%
OFFLINE 20%
BOTH 43.4%

We can interpret that majority of the audience prefer both online and
offline home services.
Interpretation :

Services Preferred NO. OF RESPONDENTS (%)


Beauty and wellness 40%
Home repairs and maintenance 33.3%
Groceries 26.7%

We can interpret that majority of the audience prefer beauty and


wellness online home services.
Interpretation :
SATISFACTION LEVEL NO. OF RESPONDENTS (%)
Very satisfied 36.7%
Satisfied 40%
Very Dissatisfied 1%
dissatisfied 5.7%
Neither satisfied nor dissatisfied 13.3%

We can interpret that majority of the audience is satisfied


from the online home services.
Interpretation :

SATISFACTION LEVEL NO. OF RESPONDENTS (%)


Very satisfied 50%
Satisfied 40%
Very Dissatisfied -
dissatisfied 3.3%
Neither satisfied nor dissatisfied 6.7%

We can interpret that majority of the audience is very satisfied


from the offline home services.
Interpretation :
REASONS NO. OF RESPONDENTS (%)

Not a social person 16.7%

Time efficiency 20%

It is easier 36.7%

More products online 6.7%

Online only offers/Specials 13.3%

Other 6.7%

We can interpret that majority of the audience chose online


home services because they found it to be easier.
Interpretation :
Reasons NO. OF RESPONDENTS (%)
Time efficiency 3.3%

Like to be hands on 30%


Security issues 43.3%
Like to interact with others 13.3%
other 10%

We can interpret that majority of the audience chose offline


home services because they found it safe.
Interpretation :

Website/App NO. OF RESPONDENTS (%)


UrbanCompany 90%
HouseJoy 10%
Malt -
Narchie -
UrbanPro -
Zimmber -

We can interpret that majority of the audience uses


UrbanCompany app for online home services.
Interpretation :
Deals/prices NO. OF RESPONDENTS (%)
yes 73.3%
no 26.7%

We can interpret that majority of the audience looks for deals


or compare prices before taking online home services.
Interpretation :

Problem faced NO. OF RESPONDENTS (%)


yes 36.7%
no 63.3%

We can interpret that majority of the audience has never felt


any problem while taking online home services.
Interpretation :

Amount spent NO. OF RESPONDENTS (%)


Less than 350 6.7%
Less than 500 40%
Less than 1000 43.3%
More than 1000 10%

We can interpret that majority of the audience has spent less


than 1000 while taking online home services.
Interpretation :
No. of times NO. OF RESPONDENTS (%)
Every month 40%
regular 1%
seldom 36.7%
Once a week 20%
never -

We can interpret that majority of the audience likes to take


online home services every month.
Interpretation :
No. of times NO. OF RESPONDENTS (%)
Every month 30%
regular 33.3%
seldom 10%
Once a week 26.7%
never -

We can interpret that majority of the audience likes to take


offline home services regularly.
Interpretation :
Risky NO. OF RESPONDENTS (%)
Strongly agree 3.3%
agree 26.7%
Neither agree nor disagree 40%
disagree 16.7%
Strongly disagree 13.3%

We can interpret that majority of the audience considers


online home services to be neither risky nor safe.
Chapter 5 -
Conclusions and
Suggestions
To conclude the project with the following suggestions based
on the data collected through the survey.

Most of the people are familiar with technology, still some of


the respondents are not. Apart from this, technical assistance
will be provided to those who need it.

Majority of the respondents are between the age of 15-30


highlighting the fact that young people are more tempted by
new technology.

Same is shown as most of the respondents are males.

Most of the people prefer both online and offline home


services. However, majority of the people uses online home
services for beauty and wellness and are satisfied by the
online home services as it is easier.

Coming to offline home services, majority of the people are


very satisfied by the offline services because of the safety and
security issues.

The study has successfully helped in proving the fact that


around 90% of the people uses UrbanCompany app for taking
online home services as it offers great deals and prices for
the services and is user friendly.
It has also been proved that majority of the people spend
more than 1000 over online home services and have never
felt any problem while taking these online home services.In
other words, we're not far from a world customers’
preference will shift more towards online home services as
Customer propensity towards in-home delivery in pandemic
times is a major positive for on demand home services
providers like Urban Company, Quikr, Housejoy and
MrRight.
Bibliography
Books :

• Kotler P. (2012). Marketing Management, A South Asian Perspective. 14th Edition U.S.A.
Prentice Hall Publication.

• Kothari C.R. (2004). Research Methodology Methods and Techniques, 2nd Edition. New
Delhi. New Age International Publication (P) ltd. Mary Bitner and Valarie Zeithaml (2010).
Services Marketing, 7th Edition.

Webliography :

 https://oyelabs.com/urbanclap-business-model/

 https://www.tpci.in/indiabusinesstrade/blogs/on-
demand-home-services-rich-dividends-tough-terrain/

 https://jungleworks.com/next-big-trend-on-demand-
home-services/

 https://www.angi.com/research/reports/market/

 https://redseer.com/newsletters/home-services-
market-updates/

 https://gositebuilder.com/blog/journal-what-is-the-
difference-between-offline-and-online-business/
Questionnaire

1. Which category includes you?*


below 15
15-20
20-30
30-40
above 40

2. Gender*
Male
Female
Rather not say/Other

3. Do you prefer online or offline home services?*


online
offline
Both

4. Which services do you usually prefer online?*


Beauty and Wellness
Home repairs and maintenance
Groceries

5. What is your satisfaction level when you take online home services?*
Very satisfied
Satisfied
Very Dissatisfied
Dissatisfied
Neither satisfied nor dissatisfied

6. What is your satisfaction level when you take offline home services?*
Very satisfied
Satisfied
Very Dissatisfied
Dissatisfied
Neither satisfied nor dissatisfied

7. Why would you choose online home services?*


Not a social person
Time efficiency
It is easier
More products online
Online only Offers/Specials
Other

8. Why would you choose offline home services?*


Time efficiency
Like to be hands on
Security issues
Like to interact with others
Other

9. Which website/app do you generally prefer or like to use?*


UrbanCompany
HouseJoy
Malt
Narchie
UrbanPro
Zimmber

10. Do you look for deals or compare prices before you take an online home service? *
Yes
No

11. Have you ever felt any problem while taking online home services?*
Yes
No

12. What is the approximate amount of money that you spend while taking online home
services?*
Less than 350
Less than 500
Less than 1000
More than 1000

13. How many times do you take online home services?*


Every month
Regular
Seldom
Once a week
Never

14. How many times do you take offline home services?*


Every month
Regular
Seldom
Once a week
Never

15. Taking online home service is risky ?*


Strongly agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree

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