Urban Company says partners' monthly net earnings grew 11% in December quarter

AgenciesUpdated: Friday, January 21, 2022, 10:44 AM IST
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Urban Company said its partners earned an average of Rs 297 per hour, up from Rs 287 per hour in the September quarter, net of commissions, fees, product costs, and travel costs. / Representative Image |

On-demand home services provider Urban Company on Thursday said its partners' net earnings grew 11 per cent in the December quarter compared to the preceding three-month period, with partners earning an average of Rs 297 per hour net of commissions and fees.

In its UC Earnings Index for the third quarter of FY22, Urban Company said its partners earned an average of Rs 297 per hour, up from Rs 287 per hour in the September quarter, net of commissions, fees, product costs and travel costs.

Partners' net earnings per month grew 11 per cent to Rs 21,980 in the December quarter as against Rs 19,801 in the September quarter.

''As partners do more orders on the platform, and spend about 100 hours per month working for the platform, they see very healthy earnings of Rs 30,455 per month. The top 20 per cent of service partners earned Rs 38,263 per month net of all commissions, fee and associated costs,'' the report said.

The top 20 per cent of the company's partners earned an average of Rs 38,263 per month, while partners completing over 30 orders in a month earned Rs 30,455 per month.

''At our request, Praxis Global has also undertaken a benchmarking study, highlighting that on average, UC partners earn about 50 per cent higher monthly earnings than their offline counterparts, and almost 4x higher hourly earnings,'' Urban Company founder and CEO Abhiraj Bhal tweeted.

In the beauty vertical in India (salon and spa services), Urban Company's women partners earned an average of Rs 312 per hour, net of commissions, fee and all associated product and travel costs, the report said.

Partners who did over 30 jobs per month earned an average of Rs 30,681 per month, while the top 20 per cent of service partners earned Rs 37,357 per month net of all commissions, fee and associated costs.

In the third quarter of FY22, monthly earnings on the platform for women partners were up by 7 per cent quarter-on-quarter over the second qaurter, the report said.

Urban Company further said it had launched a 12-point program in October with focus on improving partner earnings. ''This 12-point program has been fully implemented, and has played a key part in increasing partner earnings by 11 per cent in Q3 FY22, compared to Q2 FY22,'' it said.

In October last year, over 100 of its women partners had protested against alleged unfair work practices, following which Urban Company promised to bring in new programmes to enhance earnings of its partners.

Some of the key action items included average commissions being charged in the range of 20-22 per cent, reduction in monthly penalties to a maximum Rs 1,500, and reduced product prices of select high demand products by almost 10 per cent.

(With inputs from PTI)

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