BBA Minor Project
BBA Minor Project
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.
• 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.
To reduce time
Easily available best Vendors on one click
Easy to use
Reduce Burden of finding service provider
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.
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.
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.
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.
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:
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!
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.
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
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.
To provide instant access to reliable certifications and affordable services to the customers.
Key Resources
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.
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.
For plumbing, electrical work for home maintenance, the organization accepts the money from
the app and then charges its dues to the hired assistance.
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.
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.
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.
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.
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.
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.
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.
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.
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 Design
Statement of Problem
Objectives
For this purpose, Delhi NCR was selected and the data was
collected through a structured questionnaire.
Sample Size
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
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 :
Below 15 -
15-20 43.3%
20-30 33.3%
30-40 10%
Above 40 13.3%
Male 56.7%
Female 43.4%
Rather not say/Other -
ONLINE 36.7%
OFFLINE 20%
BOTH 43.4%
We can interpret that majority of the audience prefer both online and
offline home services.
Interpretation :
It is easier 36.7%
Other 6.7%
• 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
2. Gender*
Male
Female
Rather not say/Other
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
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