In accordance with home goods and services platform Urban Company’s Partner Earnings Index for H2 CY23, service partners who deliver more than 30 services in a month (i.e., one service delivery per day) earned an average of Rs 33,469 per month, net of all commissions, expenses, take trips, and product expenses in H1 CY23 (up by over 3 per cent over H1 CY23). The audit company JC Bhalla & Company has conducted an audit of the index’s sixth edition.
Economic Insights: Service Partners at Urban Companies Make More Money Than IT New Hires and Gig Workers
Moreover, net of all commissions, fees, travel and product expenses, the top 20% of UC service partners make an average monthly salary of Rs 42,792. These pays are almost 50% more than the typical salary for an entry-level IT position in India (the average compensation for IT freshmen in India, according to Talent.com, is Rs 347,500).
After an energetic long shift, gig workers on food delivery platforms make an average of Rs 13,581 per month net of all costs, according to the most recent NCAER data, which was released in August 2023. In contrast, gig workers on meal delivery platforms make about 82% less money than Urban Company Service Partners.
Partner Earnings on UC Platform Rise, with Female Partners Outearning Male Equivalents
According to UC, since it first released the profits Index in OND (October, November, and December) 2021, partners’ profits have increased dramatically (by 13–18% percent). According to UC’s review of its service partners’ hourly wages for H2 CY23, female partners make 23% more money on the platform than their male counterparts. When all commissions, expenses, travelling, and product-related expenses are subtracted, the average hourly wage for female partners is Rs 363, while the average hourly wage for male partners is Rs 294.
Urban Company’s Dedication to Partner Welfare: Financing and Insurance Support
The company offers free health, accidental, and life insurance to all partners on the Urban Company platform. More than 1,900 collaborators benefited from life, health, and accidental insurance coverage in CY23, and in CY2023, more than Rs 5.51 crores were paid out in insurance claims. In CY23, the company also paid out Rs 31.16 crores in loans to Urban Company Service Members through third-party non-banking financial companies (NBFCs), including personal loans and service kit loans. According to UC, this is essential because it enables its service partners to participate in a formal economic system, shielding them from falling victim to unscrupulous debtors.
Encouraging Business Partners: Urban Company’s Stock Options and Financial Education Programme
The company has been holding financial awareness workshops for all of its Service Partners in collaboration with Knowise Finance Academy in an effort to further improve their financial literacy.
“Across 12 cities, we invested over 14,000 hours in CY23 to train our Service Partners in contemporary finance management techniques,” the company stated.
In addition, the company introduced the first-ever Partner Stock Option Plan (PSOP) in the sector as part of its wealth building drive for service partners. More than 500 associates of Urban Company have received stock options to date. They are valued at more than Rs 5.2 crore.
Upward Social Mobility Trends Among Service Partners: UC Survey Offers Perspectives on Ownership, Education, and Work Satisfaction
In order to ascertain the upward social mobility trend among its Service Partners in relation to their rising salaries, UC also carried out a survey. 19,746 Service Partners took part in the survey; of them, 28.3% are homeowners, 47.5% have children enrolled in English-medium schools, and 6% are four-wheelers.
“Delivering outstanding service standards, it is clear that our Service Partners take pride in their work, and respect is the cornerstone of job satisfaction.” Their job satisfaction rises in tandem with their income, demonstrating the reciprocal nature of this regard, according to UC.
Our Previous blog
ArcelorMittal South America S.A. Citigroup Inc. raised the position.