Urban Company, the home services startup, faced another protest on Wednesday (July 12) as over 200 of its service partners staged a demonstration outside the company’s Gurugram office. The partners were protesting against the permanent blocking of their IDs in recent months, according to two gig workers involved in the protests. Photographs and videos of the protest have been reviewed by Startupnews.fyi.
Support from Gig Workers Unions
Gig workers unions, including the Centre of Indian Trade Unions (CITU) and the All Indian Gig Workers Union (AIGWU), joined the protestors in demanding the unblocking of their IDs. Dissatisfaction among Urban Company partners has been growing over the past year, but the issue has escalated in recent months.
Increase in Customer Rating Requirement
The central issue revolves around Urban Company’s decision to raise the customer rating required for partners to continue working on the platform. Previously, partners needed to maintain a rating of 4.5, but the startup increased it to 4.7, causing discontent among the partners.
In an internal video message to salon category partners, Urban Company co-founder Abhiraj Singh Bahl mentioned the company’s intention to implement stricter eligibility criteria for partners in the coming months. The goal is to enhance service quality, with requirements including customer rating, acceptance rate, and product usage score.
Urban Company’s Response
Urban Company provided the same statement it issued after a previous protest on the same issue. The company stated its commitment to fostering dialogue with partners and building a high-quality home services platform. Inc42 has learned that the startup has unblocked several partner IDs in recent weeks.
The problem is not limited to Delhi NCR, as Inc42 reported last month that Urban Company partners in Bengaluru and Kolkata were also facing the same issue. AIGWU secretary Saubhik Bhattacharya accused the company of exploiting gig workers and urged Urban Company to address the workers’ demands.
Overview of Urban Company and Financials
Urban Company, founded in 2014 by Abhiraj Bahl, Raghav Chandra, and Varun Khaitan, offers a range of services, including salon, cleaning, and appliance repair. In July last year, the startup raised $225 million in its Series F funding round, led by Prosus Ventures, Dragoneer, and Wellington Management, valuing the company at $2.1 billion. To date, Urban Company has raised a total of $445 million.
In FY22, the company’s net loss doubled year-on-year to INR 514 crore, while operating revenue rose 75% to INR 509 crore. The ongoing protests highlight the challenges faced by gig workers and the need for improved working conditions and transparency in the gig economy.
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