Urban Company to Expand Instant Services Within an Hour: CEO Abhiraj Bhal

Urban Company’s Strategic Focus on Instant Services

Urban Company Ltd. is gearing up to expand its instant at-home services segment, allowing customers to access professional services within an hour. This move reflects India’s growing shift toward quick commerce and instant gratification models.

CEO Abhiraj Singh Bhal confirmed in an interview with Reuters that the company would make “meaningful” investments over the next 2–3 years to build a dense network of professionals in its core markets.

According to him, instant services are not just about convenience:

  • They represent a strategic moat for the company.

  • They create higher engagement with customers.

  • They provide service professionals with more opportunities to fill idle time between scheduled appointments.

Investments and Challenges Ahead

Urban Company’s focus on rapid service delivery will require both labour and capital investments, Bhal admitted, and this could put pressure on the firm’s profit margins.

  • Building a dense service network is crucial before the business model can break even.

  • Logistics and operations could be challenging, especially in ensuring professionals are available at short notice.

Despite the risks, Urban Company believes this vertical can be a key driver of long-term customer engagement.

Current Service Model and New Launches

Traditionally, Urban Company has allowed customers to schedule services such as beauty treatments, plumbing, and appliance repairs in advance. The new model will complement scheduled services with faster delivery.

Recently, the company launched ‘Insta Help’, a feature that allows customers to book domestic workers within 15 minutes, signaling its intent to dominate the instant services niche.

Market Landscape and Growth Potential

The demand for on-demand services is growing rapidly in India:

  • Urban Company had 7.02 million annual transacting customers as of June 30, according to its IPO filings.

  • The online home-services market in India is expected to grow at a 22.4% CAGR from 2023 to 2030, as per Grand View Research.

Urban Company’s entry into the quick services segment places it in direct competition with emerging startups such as Pronto and Snabbit, which already offer 10-minute home services like dishwashing, laundry, and cleaning.

IPO Success and Investor Confidence

Urban Company recently went public with its IPO on September 17, debuting with a nearly 60% premium. The stock surged as much as 73.78% on listing day, settling at ₹169.00, which was 64.08% above its IPO price.

  • Market capitalization reached $3 billion (₹26,700 crore) on the first day itself.

  • Investors viewed the IPO as a long-term structural play on digital adoption and the rising demand for organized home services.

Aishvarya Dadheech, founder of Fident Asset Management, said the excitement reflects Urban Company’s dominance in India’s fragmented home-services sector, where it faces limited large-scale competition.

Challenges in Execution

While the market potential is high, analysts warn of challenges:

  • Logistics management may become difficult if professionals cannot take on extra requests.

  • Economics of scale will take time, especially outside festive seasons when demand spikes.

  • Smaller startups like Pronto and Snabbit may exploit niche opportunities by offering faster services in select regions.

Analyst Karan Taurani of Elara Capital called instant services “the next big thing,” but experts like Ashish Dhir of 1Lattice highlighted operational complexities that could hinder scalability.

Conclusion

Urban Company’s decision to double down on instant services is a bold step that aligns with India’s evolving consumption habits. While the strategy promises to build a strong competitive moat and deepen customer engagement, it also comes with operational challenges that need careful execution.

With its strong IPO debut, growing customer base, and investor backing, Urban Company is well-positioned to push boundaries in the at-home services industry. The next 2–3 years will be critical in determining whether instant services can become a sustainable growth engine or remain a seasonal value-add.


Location: Pune, Maharashtra, India

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