After protests from partners, Urban Company cuts commission cap and announces several initiatives
In a 12-point program to improve partners’ incomes and livelihoods, Urban Company said Thursday it was reducing the highest commission from 30% to 25%.
“Previously, commissions ranged from 8.5% for small orders to 30% for high priced orders. Commissions will now range from 8.5% to 25%, ”Urban Company said in a statement.
Other key actions the company has announced it will take to include removing temporary blockages on partners, marginally increasing prices for high-demand services, reducing the maximum cap on monthly penalties per partner in a month at 1,500 Rs (instead of 3,000 Rs) and concerning product prices and deductions.
The company further said it would transfer the entire amount collected from customers to partners for last-minute cancellations.
On October 8, a majority of female partners in the spa and salon verticals went on a one-day strike outside the company’s office in Udyog Vihar. The partners had sat outside the building, waved slogans and, in protest, logged out of the portal app for two days over the weekend and did not accept reservations , alleging that the company had gradually increased commissions arbitrarily, which reduced their payouts.
On Thursday, the company also announced that it would set up an SOS helpline dedicated to female partners and change its partner rating logic to incorporate reviews from older orders.
“To ensure that all partners are treated fairly, we will begin to educate our customers on the application to provide both water and bathroom use to partners. For our part, we will set up a dedicated helpdesk to facilitate the filing and reimbursement of insurance claims. The company will block customers who mistreat partners, ”the statement added.
A beautician, on condition of anonymity, said: “The company announced some new initiatives after the protest. Over the past few days, there have been consultations between partners and company representatives regarding our requests. We will discuss and deliberate in the coming days and decide on the future course of action. “