Professional Documents
Culture Documents
Entrepreneurship UrbanClap
Entrepreneurship UrbanClap
ENTREPRENEUSHIP ASSIGNMENT
ABHIRAJ BHAL- URBANCLAP
Submitted To:
Dr. Amit Kumar
Submitted by:
Nupur Srivastava D-30
Pankhuri Bhatnagar D-32
Priyamvada Rawat D-39
Submitted On
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ENTREPRENEUR CHOSEN- ABHIRAJ BHAL
Co-founder and CEO of UrbanClap
Business model:
UrbanClap is a mobile local services app which bridges the gap between customers
and
service professionals, who download the applications on their smartphones to raise
a request
for the required service and the professionals can view the exact requirements and
accordingly book the service.
When the application was launched in 2014, there was no additional charge to either
the
customer or the service professional. But since 2016 they have started charging the
service
providers a percentage of the service (typically 10-30%).
Team Size- 320
The only investment are the matching software (that matches the customer to the
service
provider according to the exact needs), the mobile applications for customer and
professionals.
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TABLE OF CONTENTS
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TRENDS OBSERVED BY THE ENTREPRENEUR BEFORE
VENTURING INTO THE OPPORTUNITY
An entrepreneur, before venturing into any opportunity must observe at least the
general
trends in the market. These trends can be on the basis of existing sales, customer
base or
information from any company in the existing business.
For Abhiraj Bhal, the founder of UrbanClap, the sector he wished to enter into was
the
unorganised service sector. The service industry, even today is very fragmented and
unorganised. The small service providers like plumbers, electricians, beauticians
etc. were
not covered under a bigger umbrella and had to operate through middle men. These
middle
men earned most of the profit that the service providers provided. So, to tackle
this issue, he
created UrbanClap, a site where small service providers could sign up and provide
their
services without the interference of middle men.
In 2014, the share of the unorganised sector in the national income was 30%. This
means, it
amounted to 612.6 billion US dollars.
612.6
1429.4
Before UrbanClap came into the picture, people relied solely on local search
companies like
Justdial or Google to help them find the stores of these small service providers.
The service
providers would then get in touch with the customers and charge their own fees.
UrbanClap
has removed that system. This gives it an advantage as right now it is not a very
crowded
market place.
The current market size for services is 4- 5 billion dollars in India. Moreover,
India is the
second largest country in which smartphones are used. This makes penetration for
companies
like UrbanClap easier. It is estimated that 5% of the service market can be tapped
into
through smartphones, ie 200 million. Additionally, the growth rate of this market
is estimated
at a 20- 30% a year. These are the general trends to be observed.
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PROBLEMS IDENTIFIED BY THE ENTREPRENEUR
BEFORE VENTURING INTO THE OPPORTUNITY
It is a basic human tendency to reach out to people whom we trust the most in times
of need.
All of us have an inner circle and an outer circle. We are the most comfortable in
our inner
circle, with the people who know us in and out and have been through our thick and
thin. It is
these relationships which we cherish and these enable us to grow more confidently,
knowing
that these people will be our safety net.
We always look for this trust factor in different areas of life, personal and
professional. And
this is what the service sector aims to deliver- reliability, consistency, safety
and security.
Since this is not a product whose quality and value can be delivered tangibly and
exactly the
same each time, the human touch in service sector makes it a daunting task to
satisfy every
customer. But if carried out properly, the same human touch in the service can make
the
overall experience a great one.
Back home we all have our favourite people who have been serving us probably since
generations. But when we move to a new city or a new country getting the same sense
of
quality and reliability is close to impossible. Thus with UrbanClap, Abhiraj Bhal
aims to
provide the customer a seamless experience with engaging us with the best service
professionals in the odd jobs category.
UrbanClap helps address the following problems associated with traditional means of
finding
service professionals:
Lack of Safety and security: All professionals’ backgrounds are checked and
verified
by UrbanClap. This ensures that when a customer lets a service person inside
their
home or other place of delivery, they do not pose a threat to the safety and
security of
the people, unlike the service professionals we hire without proof. We have
no option
but to trust them blindly and merely hope that they have the best intentions
at heart.
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GAPS IDENTIFIED BY THE ENTREPRENEUR BEFORE
VENTURING INTO THE OPPORTUNITY
Thus unlike traditional search engines and yellow pages directory, UrbanClap
can
connect the customer to the service professional (meet the demand and supply)
in 3
steps:
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POTENTIAL COMPETITORS OF URBANCLAP
Threat of New
Entrants
- 100% FDI in
eCommerce makes it
easy for liquidity
intensive co.s
Threat Of Substitutes
- Difficult for zero
revenue business model
to sustain
- Building Algorithm for
matching customer and
professional is difficult
Competitive Rivalry-
The company was founded in the year 2014 and at that time there were more
than 300
plus companies in the Local Service Business. Most of the young, new age
companies
lacked liquidity but the more matured and established yellowpages companies
had the
required liquidity to operate. Thus there was a herd mentality seen but most
of these
have vanished due to lack of funding.
There is a definite rivalry which could be clearly seen between the three
major
competitors which is UrbanClap, Housejoy and QuikrServices.
UrbanClap has raised $36.6 million; Housejoy was able to raise around $25
million
whereas Quikr would be investing Rs. 250 crores in its services sector. This
sector has
attracted investments from Amazon, Qualcomm Ventures, Matrix Partners, Accel
Partners and SAIF Partners, etc.
Buyer Power-
In the beginning of 2016, UrbanClap was getting close to 5000 orders a day
and their
aim was to reach a target of over 100000 orders per day by the year end.
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Keeping in mind the buyers requirement they offer a wide range of choices,
trusted
professionals with thorough background check, direct interaction between the
professionals and customers. Also, the services can be customized as per the
customer’s requirements.
Threat of Substitution-
As there are other big players in this sphere as well all the companies are
putting more
and more efforts into marketing campaigns and extensive strategies to retain
customer
base.
Supplier Power-
Since this is a platform that runs directly because of the service
professionals, it is
imperative for the company to maintain good relations with them. The company
should also take steps to make sure they are able to keep up with the
seasonal
demand.
Threat of new Entry-
There is 100% FDI in ecommerce and hence it is very eminent that a company
needs
a good business model and technology to sustain in this sphere.
Also it is very difficult to convince the investors for a no revenue business
for first
few years to bring in bring in new customers while making sure the company
has an
effective marketing strategy in mind.
Working on the model of addressing the concerns of the newer generation, search
engine
optimization is a very critical element of getting more customers to use the
platform,
since they go with the one listed in the top results.
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Analysis of search results:
The first result is an advertisement by Justdial, which does not hamper the
sales of UC
as they are not in direct competition.
The next few results are of independent plumbers of the area represented in
the map.
The first result is then of justdial, then UrbanClap, which indicates
extremely good
search engine optimization by the company, especially because it is only two
years
old.
This is because of the entrepreneur’s strategy of investing more in SEO and
is one of
the 3 strategies to get more customers on board in 2017.
The next few listings are of the competitors like Zimmber, Sulekha, Housejoy
and
QuikrServices.
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PERSONAL CHARACTERISTICS OF AN ENTREPRENEUR
The personal characteristics of an entrepreneur are-
1) Innovative ideas
The entrepreneur should be able to recognise the gaps in the system and be
able to
exploit it. For Abhiraj Bhal, this can be seen through how he recognised the
gap in the
unorganised service sector. He came up with a platform where all the small
service
providers could put up their details to get in touch with the customers, thus
eliminating the need for middle men, who charge exorbitantly.
2) Risk Taking
Taking risks is what defines an entrepreneur. For example, Abhiraj Bhal, left
his job
at the Boston Consulting Group to start his own company. The company was
finally
launched in 2014 and till then there was no certainty in his life. But he
still went
ahead and formed the company which is now one of the three biggest companies
in
this industry.
3) Opportunist
An entrepreneur should be an opportunist to make the best possible use of the
opportunist presented to him. Abhiraj Bhal entered the market when there were
not
many entrants. He also noticed how people wanted service providers at a pre-
determined rate and who they could trust. Noticing this need of the people,
he decided
to conduct background checks of all the service providers who list with
UrbanClap.
He managed to cash in on the opportunity at the right time so as to build
trust in their
customers.
4) Focussed
An entrepreneur should be focussed on what he wants and how he plans to
achieve it.
Abhiraj Bhal identified the gap in the existing system and came up with an
innovative
solution to this problem. For this, he was very focussed on creating a
sustainable
business model for his solution. His dedication paid off as he managed to
raise $36
million.
5) Leadership Qualities
An entrepreneur should display leadership qualities to succeed. Abhiraj Bhal
displayed immense leadership qualities as he managed to grow his company to
one of
the biggest in this sector. He also inspired others to share in his vision
and guided
them in making the company the success that it is today.
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References
https://blog.urbanclap.com/news/2016-the-year-gone-by/
http://www.livemint.com/Companies/9C1TizkqzWSZiSGSX4MasM/UrbanClap-
Housejoy-QuikrServices-prepare-for-battle-over-d.html
http://www.business-standard.com/article/companies/urbanclap-clap-to-get-help-
115081000034_1.html
https://blog.urbanclap.com/news/building-indias-largest-marketplace-for-services-
what-it-takes/
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TURNITIN REPORT
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