Rapid expansion in home services by Urban Company, reveals CEO announcement
In the rapidly evolving world of on-demand services, Urban Company, India's leading home-services provider, is making strategic moves to cater to the growing demand for instant deliveries.
According to Ashish Dhir, senior director of consumer and retail at market intelligence firm 1Lattice, the market potential for rapid services may be limited due to logistics and operational challenges. However, Dhir's concerns seem to be overshadowed by the projected growth of the online on-demand services market for Urban Company. Grand View Research predicts a compound annual growth rate of 22.4% from 2023 to 2030.
Urban Company, with a strong investor confidence following its 2025 IPO, is positioning itself as a leading player in the home service marketplaces focused on instant availability. The company is not without competition, though. Local and international platforms offering immediate residential services pose a challenge. Notable mentions include startups like General Catalyst-backed Pronto and Lightspeed-backed Snabbit.
Urban Company has traditionally allowed customers to schedule services at a later time, but it is now planning to make significant investments over the next two to three years to build a network of service professionals, enabling instant services. The company recently launched its "Insta Help" service, enabling users to book domestic workers within 15 minutes.
This strategy could potentially put pressure on Urban Company's profit margins. Elara Capital analyst Karan Taurani suggests that once the economics of instant services are figured out, they could become the next big thing. Dhir, however, believes that for a big player like Urban Company, instant services could work out during certain phases, such as festive seasons.
As of June 30, Urban Company had 7.02 million annual transacting customers. The company's growth in the instant services vertical could be challenged by managing logistics and ensuring service professionals can handle additional requests. Despite these challenges, Urban Company is gearing up to meet the demands of clients accustomed to instant deliveries, positioning itself as a key player in the evolving on-demand services market.
