UrbanClap: Market Place for On-Demand Services (A)

UrbanClap is a marketplace for on-demand services available through a smartphone app. It was established in October 2014 to bring the unorganised sector workforce into the mainstream using the power of technology. Initially, UrbanClap—developed as a horizontal marketplace—faced intense competition from existing and new players operating in the hyperlocal service space. It competed in the on-demand service marketplace by categorising its services into a lead-generation business (connecting the customer with the service provider and charging a fee for matchmaking) and a fulfilment business (taking end-to-end responsibility for service delivery quality). After three and a half years of operations, UrbanClap’s co-founders wondered whether they should close the lead-generation business and focus on the fulfilment business.