Urban Company-top 20% partners earn 50% more than entry-level IT jobs
Urban Company is one of the few aggregator platforms in the gig economy globally, which has been publishing its partner earnings transparently for the last 2 years. We are happy to present the 6th edition of the UC Partner Earnings Index for H2 CY23, which has been audited by the audit firm JC Bhalla & Company. Links to previous editions of the UC Partner Earnings Index are given below.
Key takeaways:
- Top 20% partners earned an average of INR 42,792 per month, net of all commissions and other related costs in H2 CY23, which is approximately 50% more than entry-level IT jobs in India
- Net earnings of service partners delivering >30 services in a month was INR 33,469 per month.
- Hourly earnings for women partners was 23% more than men
- Partners earnings increase on an average by 16% from OND CY21 to OND CY23
- INR 5.51 Crores worth of insurance claims disbursed to over 1900 Service Partners in CY23
UC Partner Earnings Index for H2 CY23
Service partners who deliver more than 30 services in a month (i.e. 1 service delivery a day), earned an average of INR 33,469 per month, net of all commissions, fees, travel and product costs in H1 CY23 (up by over 3% over H1 CY23). Further, average monthly earnings of the top 20% of UC service partners is INR 42,792, net of all commissions, fees, travel and product costs. These earnings are approximately 50% 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 INR 347,500).
According to the latest NCAER report published in August 2023, gig workers on food delivery platforms earn an average of INR 13,581 monthly net of all costs, after an active long-shift. In comparison, Urban Company Service Partners earn over 82% more than gig workers on food delivery platforms.
Further, as you will notice in the chart below, Urban Company’s partners earnings have risen significantly (13%-18%) over OND 2021 when we first published the Earnings Index.
Earnings by gender
Our analysis of the hourly earnings of our service partners for H2 CY23 showed that female partners earn 23% more than their male counterparts on the platform. The average hourly earnings of female partners net of all commissions, fees, travel and product costs is INR 363, while the same for male partners is INR 294.
Steady investment in social protection for service partners over CY 2023
All partners on the Urban Company platform get access to free life, accidental and health insurance cover from the company. In CY23, over 1900 service partners benefitted from the life, accidental and health insurance covers, with over INR 5.51 crores disbursed as insurance claims in CY2023.
We also disbursed INR 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. This is crucial as this allows our service partners to be a 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, we continued conducting financial awareness workshops for all our Service Partners in partnership with Knowise Finance Academy. We invested 14,000+ hours in CY23 to train our Service Partners in modern-day finance management techniques, across 12 cities.
Additionally, as part of our wealth creation initiative for service partners, we launched an industry-first Partner Stock Option Plan (PSOP). Till date, over 500 Urban Company service partners have been awarded stock options in Urban Company.
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Upward social mobility of service partners
We also conducted a poll to understand the upward social mobility trend among our Service Partners vis-a-vis their increasing earnings. 19,746 Service Partners participated in the poll, of which:
Increasing awareness around ‘Dignity of Labour’
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. 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.
