Quick Commerce Or Quick Exploitation? The Urban Company 15-minute ‘insta Maids’ Service Raises Fair Wages & Job Security Concerns

At-home services marketplace Urban Company forayed into quick commerce, launching a 15-minute ‘Insta Maids’ service for tasks like utensil cleaning, cooking prep, etc. However, the venture received immense flak online from gig worker unions and others.

A company ad positions the service as an alternative to the traditional house-help situation, stating “Your maid left you hanging? We leave your home spotless!” The service is currently priced at Rs 49 per hour, down from Rs 245 per hour, and is piloted across select regions in Mumbai, with further expansion to other cities.

Exploitation and other concerns

Following the announcement, the Telangana Gig and Platform Workers Union (TGPWU) termed the service a “blatant exploitation” of domestic workers, noting that speed must not surpass dignity. Shaik Salauddin, TGPWU Founder and the National General Secretary of the Indian Federation of App-Based Transport Workers (IFAT) also took to LinkedIn to express reservations against this venture. Salauddin argued that the new service treats workers as dispensable, compelling them into a “high-pressure, high-risk work environment” while disregarding their well-being. He also claimed that Urban Company’s new model represents “modern-day servitude,” commodifying domestic workers (already working in precarious conditions) under the quick commerce model.

Salauddin also recalled the company’s history of imposing harsh ratings, high platform commissions, and arbitrary penalties on workers. He concluded that the new model would set unrealistic performance expectations and job insecurity for workers, calling for government intervention, regulatory oversight, and the suspension of this model until it guarantees fair wages and social security.

Others across the internet opined that the model symbolises “shambolic labour laws” in India and reduces human labour to a disposable app feature.

How did Urban Company respond?

Taking stock of the severe criticism of the model, Urban Company took to X to clarify the issue. The company emphasized its commitment to its service partners, stating that they earn Rs 150 to Rs 180 per hour alongside free health insurance, life, and accidental insurance. The company claimed that partners working for 132 hours per month (22 days x 6 hours per day) gain ‘assured’ earnings of Rs 20,000 per month. Besides this, the company explained that the introductory pricing of Rs 49 per hour was a limited-time offer with potential adjustments in pricing as the service scales, thereby ensuring sustainable earnings for its partners.

Is this model feasible for the partners of Urban Company?

Generally speaking, Urban Company works on a commission-based model, charging “partners” (its platform workers) 8.5% to 25% commission depending on low or high-value orders. Additionally, the platform levies partners a convenience fee for providing its online marketplace, from the total amount paid by customers to partners. Besides this, partners are required to purchase non-verifiable products like disposables, spa oils, etc from Urban Company or its group companies (except in certain circumstances) through in-app credits. This credit system is paid and required for partners to generate “leads” or opportunities for work, alongside partners being expected to maintain a minimum balance of credits to access parts of certain services. Workers must also shoulder the travel costs to and from a customer’s location.

Further, an analysis of the working conditions of Urban Company workers, found that women workers were accompanied by male family members owing to a lack of guaranteed safety and travel assurances by the platform. As per 2011 census data, 67.6% of India’s domestic workers were women, potentially extending safety concerns to workers of the ‘Insta Maids’ service as well. Additionally, Urban Company’s ranking system for its partners depends on ratings on the platform, their location, and the number of leads accepted. However, as noted by the analysis, if the workers refuse three jobs or more per week, their lead-generating algorithm changes, penalising them for exercising control over their workspace by barring access to other jobs.

While gig worker unions are calling out the platform for prioritising speed over workers’ rights and dignity, previous concerns against unfair work practices and imposition of high ratings on partners have also been raised.

Why it matters?

Would consumers prefer the model?

Considering the viability of the ‘Insta Maids’ business model for Urban Company, one can claim that partners can engage with customers directly after one visit, inevitably taking the platform out of the equation. While this proposition may seem beneficial on account of the elimination of convenience and/or platform fees, as explained by MediaNama previously, consumers prefer online sites on account of their focus on building trust. Consumers may prefer online marketplaces like Urban Company for their grievance redressal process and the accountability they ensure for service deficiencies. To explain, in 2023, a Court held Urban Company liable for deficiency of service provided to a customer, observing that since the service partner was deputed by the company, it cannot evade responsibilities for the services he performed.

impact on traditional domestic workers

Moving forward, the service could also potentially impact traditional domestic workers. Speaking to MediaNama, Hajra Shaikh, a domestic worker from Mumbai, expressed concerns about the reduction in her monthly take-home income due to this service. She explained, “Typically employers forego pay cuts during one or two-day leaves taken for emergencies. However, if they outsource this work to another worker, they will likely deduct the amount from my salary”.

Shaikh also opined that the instant availability of the service could potentially jeopardize her permanent employment status, based on her employer’s preference. Sunita Kashyap, a domestic worker with a two-year-old son, also echoed similar fears of job loss and of being replaced with a “more easily accessible and quick service”. She also added that while her current employer allows her to bring her toddler to work, she may not have the same option if she chooses to enlist in the ‘Insta Maids’ service.

Also Read:

• Is Swiggy’s Pyng the New Urban Company for White-Collar Professionals?
• Niti Aayog’s Women Entrepreneurship Platform Announces Partnership with Urban Company, But Worker Rights Issues Loom
• On the responsibility, accountability and liability of platforms, marketplaces and aggregators

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