New Delhi: Home service marketplace Urban Company on Sunday refuted allegations that its women beautician partners were providing them with very low commissions and claimed that the earnings were much higher than the amount claimed by them.
Over hundreds of working women have protested outside the office of a unicorn start-up in Gurugram, accusing them of non-transparent low wages paid to them and the companies they work with.
A beautician partner of the company shared a screenshot that she received Rs 67 as payment after rendering a service worth Rs 1,626.
Urban Company said, “A tweet recently claimed that a beauty partner earned Rs 67 for 4 orders. This is a misrepresentation of facts. Screenshot shown is a settlement of bank transfer, not her earnings page There’s a laser.” In a blog post.
It said that the partner accepted cash payment for 2 orders and online payment for the remaining two.
UC said, “His net earnings after UC commission and other charges for 4 orders placed between October 3rd was Rs 1,941.”
The UC provided a calculation on the cost of the service provided to the users and the wages paid to the partners from that work.
Paytm Founder Managing Director Vijay Shekhar Sharma tweeted in support of the clarification provided by UC around the complex cost structure involved in offering low-cost services.
UC said that it has always been a platform where both the customer and the partner are equal stakeholders.
“The genesis of the Urban Company was to organize the home services industry for both customers and partners. In the absence of organized players, the market was controlled by intermediaries and aggregators, who restricted access to the market and reduced margins. “However, we believe we have made the industry more transparent, reduced the number of middlemen and gave voice to hitherto silent informal labor,” the blog post said.
It said that the company will never shy away from doing what is right for our stakeholders under any circumstances.
“This is always reflected in our business decisions and strategy. We are not perfect, and acknowledge that we have made mistakes in our journey so far. In the coming weeks, we will announce some important events that we believe That will further the earnings and well-being of our partner ecosystem,” UC said.
The company claimed that its partners earn Rs 280-300 per hour net of net earnings, commissions, fees and all associated product and travel costs.
Since the partners place more orders on the platform, and spend around 100 hours per month working for the platform, they see a pretty decent earning of Rs 25,000?30,000 per month.
UC said, “The top quartile of service partners earns more than Rs 36000 per month net of all commissions and costs. Our platform is making a strong comeback after the second wave, and we expect that in October and the coming months.” Earnings will be even better.”
The company said it would publish an update on this blogpost with revised data in late October.
“Our estimates show that in the offline world, service professionals earn an average of Rs 12,000 to Rs 15,000 per month,” the post said.
On-demand home service provider Urban Company raised USD 255 million (about Rs 1,857 crore) in June, led by Prosus Ventures, Dragoneer and Wellington Management, ahead of its plans to launch an IPO over the next two years.
The Series F round – which also saw participation from Y Capital, Tiger Global and Steadview – takes Urban Company’s valuation to US$2.1 billion.
The company also responded to the product it offers to its beautician partners. Read also: Upcoming IPO: Radiant Cash Management Services files draft papers for initial offer
It said the company sells products to service professionals. “These products are genuine, branded and at a much lower cost than in the offline world, passing almost all the benefits of bulk purchases with us to our service partners (in FY21, our products turnover at a marginal loss of about 0% net (Needless to say, the partners receive physical GST invoices against all the products sold), which can be verified through our annual audited financial statements),” the UC said. . Read also: Booking Mahindra XUV700? Think again as the waiting period may cross 1 year