Urban Company punishes workers when users cancel services, blocks IDs for getting ratings below 4.8 out of 5

By Ankita ChakravartiIn a shocking turn of events, Urban Company workers are protesting against the company’s bizarre set of rules. The workers, primarily the beauticians, have accused the service lending company of unfairly blocking their ID cards. The workers have alleged that Urban Company blocked their cards if they got ratings below 4.8 out of 5, their IDs were blocked. They were also penalized if the users canceled the bookings.

According to a report published by MoneyControl, a group of beauticians who work with Urban Company organized a protest at the company’s office in Gurugram. Their main concern was that their accounts were being blocked by the company, both temporarily and permanently. This blocking happened due to issues such as customers canceling bookings and receiving lower ratings from users. This problem of blocked accounts is not limited to salon service providers but is also affecting partners from other segments working with Urban Company.

The beauticians who were protesting also raised another issue regarding service bookings. They mentioned that even when they had available time slots for appointments, the Urban Company app sometimes failed to display its availability to customers. This had a negative impact on their income.

Furthermore, the protesting partners claimed that the company was promoting new beauticians on the platform, making it difficult for existing partners to secure repeat bookings. This alleged preferential treatment towards new entrants raised concerns about fairness and equal opportunities for long-standing partners.

The report reveals that the beauticians have to pay the company for training before they can start working on the platform. The training costs vary depending on the specific category they will be working in. For instance, if they choose to work in the Salon for Women category, there are three subcategories available– Classic, Prime, and Luxe, each with increasing costs. Prior to joining the platform, partners are required to undergo this training, and they claim that the initial payment can be as high as Rs 1 lakh, which includes expenses for equipment. The exact amount they pay depends on the category they have selected.

In addition to the training fees, partners also have to cover the expenses for purchasing perishable materials needed for their services and other necessary requirements. The partners themselves are responsible for paying for the materials used in providing the services.

However, partners complain that their IDs are blocked without discrimination, which creates a greater impact on them since they have already invested money in the training. Many partners even take out loans to cover these training costs.

Neha, a partner in the Prime category who had been working with the platform for several years, spoke to Money Control about the unfairly treatment. She expressed her frustration over being blocked due to cancellations. She believes it is unfair that workers like her are not given an opportunity to appeal decisions that have a significant impact on their livelihoods. According to Neha, the blocking of partners seems to happen without considering individual circumstances and is done indiscriminately.

Reacting to the allegations, Urban Company told Money Control in a statement, “Our investments in training (which is free of cost and not paid for by partners), technology, tooling, products, free life, accidental and health insurance etc., go a long way in having a controlled experience on the marketplace, enabling service partners to deliver best-in-class quality and earn a decent, middle-class livelihood,” a company spokesperson said.

“We had recently asked a few partners who were not meeting the marketplace standards despite multiple prior notices and re-trainings, to part ways with the marketplace. We continue to maintain an open-door policy and encourage dialogue with our partners. We remain committed to building a safe, high-quality home services platform,” they added.