Brief Summary
This episode of The BarberShop with Shantanu features Varun and Raghav, the founders of Urban Company. They discuss the genesis of Urban Company, their focus on providing delightful customer experiences and respectful livelihoods for service professionals, and their journey of productizing services. They also share their entrepreneurial journeys, the role of investors, and advice for budding entrepreneurs.
- Urban Company's genesis: Addressing the problem of painful service experiences in urban India.
- Focus: Delighting customers and providing respectful livelihoods for service professionals.
- Productization: Standardizing services to ensure consistency and quality.
- Impact: Transforming the lives of service professionals and creating home-proud consumers.
Sneak Peek : Introduction
The host introduces the founders of Urban Company, Varun and Raghav, expressing his admiration for the company and its services. He shares a personal anecdote about how Urban Company helped him set up his house in Gurgaon, highlighting the emotional connection and delight that customers experience through their services. The host emphasizes that stories like this, rather than financial metrics, drive the founders.
Introducing our Guests : Varun & Raghav
Varun explains that every service experience is a story in the life of the user, often an emotional one. He highlights the delight consumers experience when things go right and the bond that forms between the customer and the skilled professional. Raghav adds that providing delightful experiences and respectful, high-quality livelihoods to service professionals is their life's work. The host then asks about the initial thinking behind Urban Company, noting that many similar companies failed due to inconsistency and high attrition rates.
The Founding Story & Genesis of Urban Company
Varun shares that in 2013, he and his co-founders returned to Delhi and, after their initial business ideas failed, decided to understand the problems people faced in India. They spent months talking to people in public places, discovering that people were struggling with service experiences despite increasing disposable income and a desire for an aspirational lifestyle. Raghav adds that customers were willing to pay for good service but couldn't find reliable providers. This realization led them to focus on solving the problem of painful service experiences in urban India.
Standardising Services at Urban Company
Raghav explains that they initially envisioned a reverse auction model where customers would post their requirements and multiple vendors would bid for the job. However, they soon realized that customers didn't care about choosing between vendors; they just wanted the job done well. This led them to take on the responsibility of sending a qualified professional, which then led to the need for standardization and quality control. They started conducting interviews and practical tests to assess the skills of service professionals, transforming their office into a lab-like environment.
Exploring Urban Company’s Service Categories
Varun explains that they initially aimed for a horizontal platform covering all service needs, including bespoke categories like interior designers and wedding photographers. However, they realized that the real value lay in providing reliable, well-trained supply. This led them to focus on standardized services, taking end-to-end responsibility for the outcome. The host shares his positive experiences with Urban Company's barber services, highlighting the consistency and professionalism of the service providers.
Native Brand’s Success & Future Roadmap
Varun shares that Urban Company has launched its own product brand called Native, starting with water purifiers. He explains that they identified customer pain points with existing water purifiers, such as the need for frequent servicing and the unappealing design. Native water purifiers offer better filtration, longer service intervals, and a modern design. The host praises the design and functionality of Native products, noting that they solve real consumer problems and are a delight to use.
Growing Service Professionals: From Employees to Entrepreneurs
Varun explains that Urban Company's service professionals are not employees but micro-entrepreneurs, running their own businesses on the platform. This model aligns incentives, as they earn more by providing high-quality service and building a direct customer base. Raghav shares that Urban Company provides training, tools, and technology to help service professionals succeed, converting them into entrepreneurs with much higher incomes. He shares stories of service professionals who have transformed their lives, moving to better homes, sending their children to English-medium schools, and achieving financial independence.
Varun & Raghav’s Entrepreneurial Journey
Raghav describes his entrepreneurial journey in three phases: initial enthusiasm and empowerment, a focus on rational outcomes and OKRs, and a current phase of concentrating on the inputs and craft of the business. He emphasizes the importance of culture, defining it as the actioning framework that helps people make decisions without top-down direction. Varun shares that he is most proud of the impact Urban Company has created on customers, partners, and internal people. He shares stories of service professionals who have improved their social status and achieved their dreams.
The Investing Story of Urban Company
Varun acknowledges the instrumental role of investors in building Urban Company. He mentions early believers like Kunal Bahl and Rohit Bansal from Titan Capital, as well as elevation Capital, Axel, and Bessa. He highlights that these investors believed in their vision and supported them through various stages of growth. Raghav adds that the investors provided mentorship, capital, and valuable inputs, helping them navigate the challenges of building a complex business.
Varun & Raghav’s Advice for Budding Entrepreneurs
Varun advises aspiring entrepreneurs to spend time with their potential users and identify problems that others aren't seeing. He emphasizes the importance of having a unique point of view and not getting discouraged by others' opinions. Raghav encourages entrepreneurs to jump in and start building, as the real journey begins once the business is launched. He also stresses the importance of value creation and having clarity of purpose. Both founders emphasize the need for patience and perseverance, as entrepreneurship is a long and challenging journey.
