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Business News India: Latest Business News Today, Share Market, Economy

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Are Snabbit, Urban Company, and Pronto fighting India’s n...
2026-05-12 · via Business News India: Latest Business News Today, Share Market, Economy

A few years ago, the idea of booking house help on demand through an app would have sounded far-fetched. But India’s convenience economy is evolving rapidly, and after groceries, food, and medicines, startups are now trying to bring instant delivery models into home services.

The shift gained momentum in 2024 with the launch of Snabbit, founded by former Zepto executive Aayush Agarwal. Having witnessed the rise of quick commerce firsthand, Agarwal identified a major gap in India’s home services market — a sector that remains overwhelmingly offline and fragmented despite massive demand.

Today, startups such as Snabbit, Urban Company, and Pronto are betting that Indian consumers are ready to pay for speed, reliability, and professionalised domestic services, much like they embraced grocery delivery apps.

What are instant home services?

These platforms allow users to book domestic help and home-related services in real time through an app. Depending on the company and city, services range from cleaning and dishwashing to deep cleaning, appliance maintenance, and handyman work, starting as low as Rs 39.

Unlike traditional home services that rely on informal neighbourhood networks or personal referrals, these startups promise verified workers, transparent pricing, predictable service quality, and faster turnaround times.

Some platforms are also experimenting with scheduled or near-instant services, attempting to replicate the convenience model popularised by quick-commerce companies.

Nearly 98% of India’s home services market still operates offline, making it one of the country’s largest untapped digitisation opportunities. The market is estimated to be worth nearly $60 billion, according to consultancy firm RedSeer.

Speaking earlier with Business Today, Agarwal had said Snabbit’s goal was not to disrupt livelihoods but to digitise existing offline behaviour on both the demand and supply sides.

Why are these services becoming popular?

The biggest driver is convenience.

India’s top metros, including Delhi NCR, Mumbai, and Bengaluru, are witnessing rising adoption of app-based home services as dual-income households, longer work hours, and urban lifestyles reduce the time available for household chores.

Consumers are increasingly seeking dependable and professional services instead of ad-hoc arrangements that may lack reliability or accountability.

RedSeer estimates that India’s home services market had a total addressable market of Rs 5,100-5,210 billion in FY2025 and is expected to grow at a CAGR of 10-11% through FY2030.

As customer expectations evolve, usage patterns are also changing. Services such as deep cleaning and maintenance, once used occasionally, are seeing higher repeat frequency among middle- and upper-income households. Companies are also exploring adjacent categories such as childcare and elderly care.

A new battle for startups

The space is rapidly becoming competitive.

Urban Company has entered the instant services category through offerings such as Insta Help, intensifying competition for newer players like Snabbit and Pronto. Unlike early-stage startups, Urban Company also brings scale, customer recall, and operational experience to the segment.

Industry executives believe the market is likely to remain concentrated in India’s top 10-15 cities, with selective expansion into Tier-II markets over time.

The sector mirrors the early years of quick commerce, where consumer adoption is rising quickly but profitability remains uncertain.

Can the business model work?

Despite the excitement, instant home services come with operational complexities.

Unlike grocery delivery, the business depends heavily on workforce availability and consistency. Labour shortages, migration patterns, and wage pressures can directly affect service quality and fulfilment timelines.

Industry insiders say the past few months have been particularly challenging due to election-related migration, with many workers returning to their hometowns to vote. Events such as panic-driven LPG shortages have also disrupted workforce availability.

A shortage of service partners often forces consumers to switch between apps or abandon the service altogether.

Companies also face pressure to maintain competitive wages. According to sector experts, many platforms currently pay workers at least 30% above minimum wage benchmarks in several markets while also offering benefits such as insurance coverage and emergency loans.

As of April 2026, central government minimum wages ranged from roughly Rs 783 per day for unskilled workers to Rs 1,035 per day for highly skilled workers.

However, some users still believe the platform model lacks the “personal touch” traditionally associated with long-term domestic help relationships.

India’s home services market

Despite growing consumer interest, organised online penetration in home services remains extremely low.

According to RedSeer, online penetration accounted for less than 1% of net transaction value in FY2025, highlighting the dominance of informal offline networks.

The online segment currently stands at Rs 41-43 billion but is projected to grow at a CAGR of 18-22% through FY2030 as consumers increasingly prioritise convenience, reliability, and accountability.

For startups, that presents a significant opportunity — but also a long road ahead.

Just as quick commerce reshaped how urban India buys groceries, instant home services companies are now attempting something even more ambitious: changing how Indian households manage everyday life.