Amid Partner Protests, Urban Company CEO Backs Policies; Claims Pre-Tax Profitability In Q1

At a time when Urban Company has seen a number of protests by the workers employed by the platform, the hyperlocal services startup’s cofounder Abhiraj Singh Bhal has reportedly alleged that local politicians and unions seek advantage from such conflicts and put pressure on the firm.

Bhal addressed the criticism around the startup’s new policy for partners, which penalises gig workers for sustained low ratings from users. “Sometimes there is pressure on us. Local politicians and unions get involved; some may seek political mileage,” he was quoted as saying by Moneycontrol.

“There is pressure on us to take back the protesting workers, but it would be unfair to the vast majority of other hardworking partners and customers.”

This also marks the company’s first public statement addressing the protests against its new policies, introduced early last year under ‘Mission Shakti’.

Earlier this month, women gig workers working with the platform went on a strike at the consumer services startup’s Bengaluru office to protest against its new terms of reference.

The protestors were part of the Gig and Platform Services Workers Union (GIPSWU), which described new work conditions as “horrific” and likened to placing thousands of partners in exploitative situations akin to slavery.

Over the years, Urban Company has faced protests from certain segments of its partners. According to Bhal, these protests mainly concern two policies — the ratings system and a newly implemented order scheduling system.

Bhal said that Urban Company’s service partners have maintained an average rating of 4.83 out of 5 in 2023 and 2024 so far, with category-specific minimum thresholds ranging from 4.5 to 4.7. Partners falling below these thresholds undergo retraining and feedback, but persistent low ratings result in removal from the platform.

Founded in 2014 by Bhal, Raghav Chandra, and Varun Khaitan, Urban Company offers a range of services such as salon and massage, home cleaning, appliance repair services, and painting.

Meanwhile, the startup claimed its consolidated business turned profitable before tax in the first quarter (Q1) of the financial year 2024-25 (FY25).

In May, Bhal took to LinkedIn to claim that the startup turned profitable before tax in April 2024. In his post, he also said that the platform will focus on growing profitably and sustainably while “prioritising” the interests of customers, service partners, employees, and shareholders.

Reportedly, the company is also on track for an IPO in 2025 and will soon announce a new independent director on its board.

Ubran Company said that as per its latest Partner Earnings Index, there has been a continuous rise in the earnings of the service partners earnings.

In the second half of 2023, service partners delivering more than 30 services per month earned an average monthly net income of INR 33,469, the startup said. Additionally, the top 20% of Urban Company service partners earned an average monthly income of INR 42,792 after deducting all commissions, fees, travel, and product costs, it added.

The startup also claimed that women service partners earn 23% more than their male counterparts.

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