Urban Company Data Punctures Narrative of Upward Mobility in Gig Economy
In a revealing press release, home services platform Urban Company disclosed that its service professionals can earn as much as, or even more than, entry-level salaried professionals in India's IT and IT-enabled services sectors. However, a deeper analysis of the company's own data suggests that these earnings are primarily driven by longer working hours and higher order volume, rather than improved productivity, skill-based compensation, or genuine career progression.
The Reality of Hours Versus Value
According to data covering April to December 2025, Urban Company's top 5% of professionals spent an average of 167 hours per month working on the platform. This figure is nearly double the hours logged by the average Urban Company 'partner'. These hours are measured as 'time logged in', encompassing both active service delivery and periods spent waiting for additional orders.
Strikingly, the net earning per hour remained flat across the entire cohort, hovering around ₹310-313. While top performers earned an average monthly income of ₹51,673 compared to ₹28,322 for the average professional, the data indicates this disparity stems almost entirely from increased working hours and order volume, not from higher pay rates or rewards for enhanced skills.
Executive Claims Versus Worker Experiences
Urban Company's CEO, Abhiraj Bhal, emphasized the company's focus on strengthening demand, improving efficiency, and investing in the long-term career progression of service partners. "Our focus remains on nurturing that ecosystem by strengthening demand, improving efficiency, and investing in the long-term career progression of service partners on our platform," Bhal stated.
Contrasting this, gig workers and their unions highlight a fundamental lack of upward mobility. Unlike traditional white-collar roles, gig work does not typically offer higher pay for better skills or a clear ladder for advancement. Nirmal Gorana, national coordinator of the Gig and Platform Service Workers Union, pointed out that workers are being pushed to work longer hours for shrinking take-home pay, while also lacking basic workplace dignity, such as access to restrooms at clients' homes or paid menstrual leave for women.
Broader Industry Context and Defense
The debate intensifies against the backdrop of recent strikes by gig workers' unions. Deepinder Goyal, vice chairman of Eternal Ltd (parent company of Zomato and Blinkit), defended the gig economy model, calling it "one of the largest organized job creation engines in India." He argued that gig work provides insurance, fair wages, and an opportunity for upskilling, advocating for less regulation to bring more people into the fold.
Eternal's December FY26 shareholders' letter noted that delivery partners typically earn ₹18,000-₹22,000 monthly on average, with top performers reaching over ₹30,000 based on hours, order volumes, and incentives. Yet, workers counter that even higher earnings than entry-level IT jobs offer no long-term value, as prices for services have dropped due to rising competition, while costs and platform commissions have increased.
Emerging Reforms and Structural Shifts
In a significant development, India's new labour codes, implemented in late 2025, now formally recognize gig and platform workers, expanding social-security coverage to them. Aggregator platforms like Eternal, Uber, and Urban Company are required to contribute 1-2% of their annual turnover toward a Social Security Fund, capped at 5% of total payments to their workforce. Workers are also to be registered with Aadhaar-linked accounts for benefit portability.
Kartik Narayan, CEO of Apna Jobs Marketplace, observed that while gig roles remain largely contractual and episodic, the introduction of social security provisions marks an important structural shift. "It won't change everything overnight, but it does create a base layer of protection that didn't exist earlier," Narayan said, referring to measures like insurance and formal registration.
This evolving landscape underscores a critical tension in India's gig economy: the promise of flexible earnings versus the reality of hours-driven income without clear pathways for growth or skill recognition.
