More than 100 “partners” working with the Urban Company home services market demanded better wages, safer working conditions and social security benefits and alleged that the company had exploited and robbed them.
On Friday, a majority of female partners in the spa and salon verticals held a one-day strike outside the company’s Udyog Vihar office. In protest, they also logged out of the portal app for two days over the weekend and did not accept reservations. They said that over the past few months, the company has been gradually increasing commissions arbitrarily, which is reducing their payouts.
The partners said they had voiced concerns over the past three months, but were at a stalemate. On Monday, they said they only logged in after sharing a list of requests with the company, which has now requested a few days to address their concerns. Urban Company, in a statement, said during the pandemic, it approved interest-free loans worth Rs 100 million for all of their beauty partners in the locked areas.
Poonam Parmar, a partner esthetician since 2017, claimed the company had resorted to “underhanded tactics” of arbitrarily blocking credentials and degrading partners if they refused reservations.
“They increased the commissions up to 30%. Previously we were free to choose the number of jobs [bookings] in one day. Now, if I accept less than 12 out of 20 reservations, warnings are issued and then the identifier is blocked, which means no work. This is not the independent model that was discussed at the time of accession. They are exploiting us, the workers in the odd-job economy, ”she said.
Seema Singh, another beautician, said: “The company is pushing to do at least 30 jobs per month. If the reservations are lower, the bill and the possible payment are reduced.
In a memorandum, the partners demanded that commissions be deducted transparently or rule-based through a tiered system and that the net commission charged should not exceed 20% for a transaction. “For example, for a pedicure that costs Rs 600, Rs 150 is deducted for the cost of purchasing products, Rs 100 on average is the means of transport, and they also deduct the commissions. I have Rs 260 left as a net payment, ”Parmar said.
Calling for flexibility in work operations, the partners demanded four cancellations without penalty per month; immediate payment of credit repayments; transportation costs for last minute customer cancellations; payment credits for each minute of waiting longer than 4 minutes; and penalties to be canceled if a partner canceled with 24 hours notice.
“Often times, we have to refuse or cancel a reservation if a location is remote or for security reasons. I am staying near Sohna, so I cannot take care of a reservation in Manesar late in the evening. But if I decline reservations, my bill goes down and that affects future income and invites a penalty, ”said another esthetician, on condition of anonymity.
Other requests raised by partners include the discretion to purchase products on their own, the reinstatement of partners who have been blocked due to rating issues, a dedicated helpline for reporting harassment issues and security, social security (accident and general health policy) for all partners, and an overhaul of the rating system. They added that partners should only be rated on service delivery performance.
“We are not allowed to buy beauty products from the market. We have to buy them from the company. Sometimes there is a markup as the prices vary from market rates and charges are deducted from our account. There should be transparency, ”Singh said, adding that they would continue with the protests if their demands were not met.
The company, in its statement, said: “The urban enterprise partners earn an average net income of 280-300 rupees per hour, net of commissions, fees and all costs associated with products and travel. . All service partners have access to life and accident insurance coverage, free training, loans and other benefits such as free vaccinations and PPE kits. Several partners also benefit from free health insurance via the platform.
He added: “We believe we have made the industry more transparent, reduced the number of middlemen and given a voice to informal work which has hitherto been voiceless. We are not perfect and recognize that we may have made some mistakes in our journey so far. In the coming weeks, we will be announcing some important programs that we believe will further improve the incomes and well-being of our partner ecosystem. “
The company also shared a detailed blog post on social media refuting some of the allegations raised by the partners.
According to data shared by Urban Company, for female partners in vertical salons and spas in India, in July, on average, a service partner earned Rs 19,717 as net profit per month after deducting commissions, other expenses, travel expenses and fresh produce. For the month of August, a service partner earned an average of Rs 20,943 as net income per month, while in September a service partner earned an average of Rs 18,831 as net income for the month. month.
