 "Slow IT growth, high talent supply may keep salaries low")
Service partners who deliver more than 30 services in a month (i.e., one service delivery a day), earned an average of Rs 33,469 per month, net of all commissions, fees, travel and product costs in H1 CY23 (up by over 3 per cent over H1 CY23), according to home services platform Urban Company’s Partner Earnings Index for H2 CY23. The 6th edition of the index has been audited by the audit firm JC Bhalla & Company.
Further, the average monthly earnings of the top 20 per cent of UC service partners are Rs 42,792, net of all commissions, fees, travel and product costs. These earnings are approximately 50 per cent higher than the average earnings in an entry-level IT job in India (as per Talent.com, the average CTC of IT freshers in India is Rs 347,500).
According to the latest NCAER report published in August 2023, gig workers on food delivery platforms earn an average of Rs 13,581 monthly net of all costs, after an active long-shift. In comparison, Urban Company Service Partners earn over 82 per cent more than gig workers on food delivery platforms.
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UC said its partners' earnings have risen significantly (13 per cent-18 per cent) over OND (October, November, December) 2021 when it first published the Earnings Index.
UC’s analysis of the hourly earnings of its service partners for H2 CY23 showed that female partners earn 23 per cent more than their male counterparts on the platform. The average hourly earnings of female partners net of all commissions, fees, travel and product costs are Rs 363, while the same for male partners is Rs 294.
All partners on the Urban Company platform get access to free life, accidental and health insurance cover from the company. In CY23, over 1,900 service partners benefitted from the life, accidental and health insurance covers, with over Rs 5.51 crores disbursed as insurance claims in CY2023.
The firm also disbursed Rs 31.16 crores worth of loans, including personal loans and service kit loans to Urban Company Service Partners via third-party non-banking financial corporations (NBFCs) in CY23. UC said this is crucial as it allows its service partners to be part of a formal economic environment that protects them from getting into debt traps with third parties.
In a further attempt to increase the financial know-how of our Service Partners, the firm continued conducting financial awareness workshops for all of its Service Partners in partnership with Knowise Finance Academy.
“We invested over 14,000 hours in CY23 to train our Service Partners in modern-day finance management techniques, across 12 cities,” said the company.
Additionally, as part of the wealth creation initiative for service partners, the firm launched an industry-first Partner Stock Option Plan (PSOP). To date, over 500 Urban Company service partners have been awarded stock options in Urban Company. These are worth over Rs 5.2 crore.
UC also conducted a poll to understand the upward social mobility trend among its Service Partners vis-a-vis their increasing earnings. 19,746 Service Partners participated in the poll, of which 28.3 per cent own a house, 47.5 per cent have enrolled their child in an English medium school and 6 per cent own a four-wheeler.
“Respect is a cornerstone of job satisfaction, and it's evident that our Service Partners take pride in their work, delivering exceptional service standards. This respect is a two-way street - as their earnings increase, so does their job satisfaction,” said UC. “We believe that every job, regardless of its nature, deserves dignity, and our 'Chhota Kaam' campaign underscores our commitment to narrowing the respect gap between different professions.”
