Home News Urban Company announces 12 point program to improve partner earnings and livelihood

Urban Company announces 12 point program to improve partner earnings and livelihood

by Our Corresspondent - Oct 14, 2021
Urban Company announces 12 point program to improve partner earnings and livelihood, News, KonexioNetwork.com

Mumbai  : In our previous article, we had shared detailed data points and illustrations around partner earnings, benefits and payout processes to bring in transparency and clarity to all stakeholders. In the last few days, our team has met hundreds of partners across cities. We also wanted to use this as an opportunity to take a step back and bring positive improvement in two key areas of partner experience - partner earnings and partner livelihood.


Today, we are announcing a 12 point program, which we believe will significantly improve partner earnings and livelihood for all partners on our platform in India.


Partner earnings: There are 6 key actions which we are undertaking over the next few days to improve partner earnings.


1.               Removing temporary blocks on partners: Today, partners are algorithmically blocked for a wide variety of reasons from working on the platform for short intervals of time. We have made a decision to remove all such algorithmic blocks apart from quality blocks. This simple change will reduce overall blocks by 80% and ensure our partners do not lose out on available time on the platform. Simultaneously, we will increase focus on continuous training to improve their service quality.


2.               Service pricing changes: For better take home earnings for our partners, we are marginally increasing prices of several high demand services across categories.


3.               Commissions: For Beauty categories (in which almost all our women partners work), given the impact of COVID-19 and other factors, we are reducing the highest commission slab from 30% to 25%. Earlier, commissions ranged from 8.5% for small orders to 30% for high-ticket orders. Commissions will now range from 8.5% to 25%. The highest slab currently applies to high value orders and this change will now help partners earn more on these high value orders (shown below is the commission graph for one of our beauty categories - Salon at home for women). Average commissions after this change come out in the range of 20-22%.

4.               Reducing monetary penalties significantly: We want to minimize penalties as much as possible and envisage a platform where no penalties are needed over time. Earlier, there was no cap on penalties charged per month per partner, which was recently changed to put a maximum cap of Rs 3,000 on monthly penalties charged per partner. We are further reducing the maximum cap on monthly penalties per partner per month to Rs 1,500.


5.               Product pricing and deductions: Moving forward, for any new product launches, deductions will be made after the products are delivered to partners and post their consent. Additionally, we have reduced product prices of select high demand products by almost 10%. It is important to iterate that we sell genuine, high-quality products to our partners, and pass on almost all benefits of bulk procurement to them (In FY21, we made a small net loss on our product sales business).


6.               Last-minute cancellation by customers: We have recently introduced a cancellation fee to deter customers from making last-minute cancellations. To compensate for the travel cost borne by partners whenever last-minute cancellations happen, the entire amount collected from customers for cancellations will be transferred to partners. This was so far being done for UC Plus partners, and will now be done for all partners.