Amid protests Urban Company slashes commission cap to 25 from 30 percent

Urban Company slashed its commission cap by 5 percent to 25 percent to improve earnings of its partners across categories, it also introduced a 12-point programme to improve partner earnings and livelihood.

The move follows a protest by Urban Company beautician partners last week who alleged that the company was deducting huge commission and giving out small payouts. The claims were refuted by UC with a detailed chart showing commission deduction, cost of service and payouts to partners.

"We are not here to negotiate with our partners because partners are part of our family. We are here to hear them out. We could have done little bit now little bit later but we have gone out with probably the most comprehensive and most wide ranging programme. I hope our partners will be happy with it. We have been speaking to thousands of partners across all assets," Bhal said.

He said that the measures will have some impact on the company's earnings but it will be recovered with the growth. "If partners are happy, customers will be happy and revenue will grow," Bhal said.

The company is also increasing prices of several high demand services across categories to improve take home earnings of partners.

It has removed 80 percent parameters that blocked its partners from getting jobs to give them access to more earning opportunities.

The company has halved the penalty cap to Rs 1,500 per month from Rs 3,000 earlier that were levied on cancellation of services or other quality of services glitches.

UC has also given flexibility to partner service providers to pay for the products that the company provides them after it reaches them and they start earning from it. Earlier the deduction was made even before the product reached them.

UC has removed the automatic credit deduction and made it optional for all to provide more liquidity for partners.

"This is for all segments. It is not just for beauty. We have done something comprehensive and across the board. We have done it with our heart at the right place. We have done it for all partners," he said. Bhal said that the company will double its efforts to skill partners to help them get better ratings on services that will provide more earning opportunities.

UC has enhanced facilities for partners by setting up a dedicated helpdesk to facilitate claim reimbursement of insurance that it provides to them. It has extended the reimbursement programme for COVID-19 vaccines from 15 October to 31 December.

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