Partner Earnings up 11% q-o-q | UC Earnings Index (Q3 FY22)
In October 2021, we had published the first edition of the UC Earnings Index, highlighting earnings data for our service partners in India for Q2 FY22. Today, we are releasing the second edition of the UC Earnings Index, capturing data for Q3 FY22. Additionally, we are also providing a status update of the 12 point program we had launched in October 2021 to improve service partner earnings and happiness.
Summary of the Earnings Index for Q3 FY22
- UC partners earned an average of INR 297 per hour (Up from INR 287 per hour in Q2 FY22), net of commissions, fees, product costs and travel costs
- Partner earnings grew 11% quarter-on-quarter compared to Q2 FY22
- Top 20% of our partners earned an average of INR 38,263 per month
- Partners completing >30 orders in a month earned INR 30,455 per month
- The 12 point program announced in Oct 2021 has been fully implemented
- Hourly earnings for women partners on the platform stood at INR 312 per hour, about 5% more than the platform average
- As per a detailed third-party benchmarking study done by PGA Labs, UC partners on average make about 50% higher monthly earnings than their offline counterparts and almost 4x the hourly earnings.(The pdf version of the report can be accessed here)
UC Earnings Index for Q3 FY22
The data below highlights earnings for all our service partners in India. We have also separately highlighted the earnings of our women partners in the salon and spa verticals. Since Urban Company partners are not our employees, are free to work outside the platform and work flexibly, we have also provided data-points around earnings of partners who have completed >30 orders in a month (Which represents about 50% of our service partners’ available work time depending upon the category), and the top 20% of partners.
Table 1: For all Urban Company Partners in India
As the table below highlights, Urban Company partners earned an average of INR 297 per hour, net of commissions, fee and all associated product & travel costs. As partners do more orders on the platform, and spend ~ 100 hours per month working for the platform, they see very healthy earnings of INR 30,455 per month. The top 20% of service partners earned INR 38,263 per month net of all commissions, fee and associated costs. In Q3 FY22, monthly earnings on the platform were up by 11% quarter-on-quarter over Q2 FY22. Additionally, we had requested PGA Labs to conduct a detailed, third party audit of the earnings of UC service partners, and benchmark them against earnings of other service professionals in the offline world. The benchmarking report by Praxis is available here, and as per their study, UC partners on average earn about 4x more than their offline counterparts.
Table 2: For women partners in the beauty vertical in India
In the beauty vertical in India (Salon and spa services), Urban Company’s women partners earned an average of INR 312 per hour, net of commissions, fee and all associated product & travel costs. Partners who did >30 jobs per month earned an average of INR 30,681 per month. The top 20% of service partners earned INR 37,357 per month net of all commissions, fee and associated costs. In Q3 FY22, monthly earnings on the platform for women partners were up by 7% quarter-on-quarter over Q2 FY22.
What led to the 11% increase in net monthly earnings
In Oct 2021, we launched a 12-point program with the focus on improving partner earnings and happiness. This 12-point program has been fully implemented, and has played a key part in increasing partner earnings by 11% in Q3 FY22, compared to Q2 FY22.
These are the key actions we undertook to increase partner earnings:
Improving partner livelihood
Through our seven-year journey, we have focused extensively on partner livelihood through our skilling programs, other security benefits and most recently through our #LittleActsOfKindness initiative.
Security net provided to partners
1. Group Insurance for all service partners
All active partners on the UC platform in India are covered under our Group Life and Accidental Insurance cover, in partnership with ACKO. The key aspects covered by the policy are -
- Life insurance: INR 6 lakhs
- Disability: INR 6 lakhs
- Accidental hospitalization: INR 70k
- Accidental OPD treatment: INR 10k
- Education grant for child in case of death or permanent disability: INR 60k
- Loan waiver in case of death or permanent disability: INR 50k
2. Health insurance for UC Plus partners
All UC Plus partners in India have access to additional health insurance benefits, which includes up to INR 2 lakh in-hospitalization treatment, room/ICU expenses, OPD, medical equipment and 12 free online doctor consultations in a year.
3. Personal loans
We offer the option of availing loans (facilitated by UC through NBFCs) in the range of INR 5,000–30,000 on our partner application). These are instantaneous loans that can be processed in a single day. The loan amount depends on the category of a partner. Since this is for emergency purposes, no questions are asked. So far, over Rs 2.7 crore worth loans have been disbursed in the past year, with a ticket size of anywhere between INR 3,000 to 30,000.
Watch Asha Thakur, wife of an Indian Army Officer and a UC salon partner, talk about her journey with us:
Watch Preeti Kharade talk about how she is able to take care of her 46-year old sister with development disability alongside working as a UC Spa therapist.