CEO of Achareh: Achareh Holds 1% of the Service Market

CEO of Achareh: Achareh Holds 1% of the Service Market

The share of online services in the overall home services market has yet to reach 10%, with some online service platforms estimating it to be around 6%. However, the reality is that in many areas, especially urban regions, the model of service delivery has been significantly transformed. Hamed Tajeddin, the CEO of Achareh, believes that in the coming years, a large portion of the traditional service market will shift towards online services. Although the exact market share of online service platforms is currently unclear, Tajeddin asserts that Achareh holds a significant portion of this market.

There are approximately six platforms providing home services online. What is Achareh’s market share among them?

Firstly, it’s important to note that answering this question is based on estimation, and it’s not possible to provide a precise number with certainty. Anyone claiming to know the exact figure is likely incorrect because this data is dynamic and can change daily. Therefore, defining and identifying market share over time requires methodical market research.

Considering this, one tool that can provide relatively unbiased statistics and is less costly than rigorous market research is Google. According to Google’s “interest over time” metric, Achareh is 12 times larger in terms of orders compared to its closest competitor over a long period and 50 times larger than some other rivals. Additionally, in some vertical target markets, Achareh’s competitors have a ratio of 1 to 30 compared to Achareh. However, Achareh operates in a broader category beyond a single vertical target market.

Regarding the overall market estimation, we project that there are 500 million orders in the service sector, and we currently handle about one million orders annually. This equates to a ratio of 1 to 500, or 0.2% of the total service market. However, not all of this service market is accessible to be transitioned to the digital space. The accessible portion is likely around 100 million, and we hold 1% of that.

This is not unusual, as even Amazon in the U.S. only held 1% of the country’s retail market after years of operation. Currently, other platforms in the e-commerce sector, despite having been active longer than us, command a small percentage of the online retail market in Iran.

How Many Services Does Achareh Offer and in How Many Cities?

We offer 300 different services on Achareh. Our primary presence is in major cities such as Tehran, Mashhad, Shiraz, Karaj, and Isfahan. The number of cities we operate in is variable, and our team may establish new locations as needed. Currently, we are active in approximately 20 cities.

Do You Plan to Increase the Number of Services?

We currently cover a wide range of services on the Achareh platform that addresses almost every need. From my perspective, the services provided on Achareh can be divided into two major categories: services related to buildings and services related to individuals. Additionally, we offer other services related to objects and personal matters, such as moving, automotive services, and repairs for home appliances, laptops, and other items.

Although we cover a substantial portion of needs, we are continuously evaluating and developing new services to meet diverse customer requirements more effectively. Our goal is to establish Achareh as a one-stop-shop where all needs can be met in one place.

What is Achareh’s Business Model?

Our business model is primarily C2C, but we also have a B2B component. For example, some organizations use Achareh for their cleaning services, and sometimes companies outsource their building maintenance to us, which is handled by one of our subsidiary companies, Achareh Sazeh, rather than directly by Achareh.

Do You Consider Achareh a Super App?

There are various definitions of a super app, but the fact that a range of platforms strive to maximize the value created for customers makes Achareh align with the super app concept.

One of the things we do is encourage customers to switch from one service network to another. For instance, if a customer uses one of our services, we encourage them to explore other services as well. This cross-sell strategy makes sense within a super app or a platform offering a variety of services.

We use artificial intelligence to prompt users to utilize various services that may be beneficial to them. The performance of this AI has been impressive; for example, one in five suggested orders by the AI results in an actual job being completed, which is notable.

What are the Challenges of Running a Business as Large as Achareh?

One of the biggest challenges is managing such a broad platform. The first issue is user experience, which varies across our different business lines. We strive to ensure a positive and memorable user experience in every aspect of Achareh’s services.

Effective communication with customers is another challenge. Creating the perception that Achareh can meet all customer needs is not enough on its own; saying “we have everything” does not impact audiences unless we invest significant energy and resources into effectively communicating this message and encouraging customers to use our diverse services.

Another challenge is recruiting and training specialists. Unlike ride-hailing platforms where the interaction between the customer and the driver is brief, our specialists, such as painters, may work at a customer’s home for a week. This requires more sensitivity in training and behavior of the specialists.

If a few minutes of a bad experience in a ride-hailing service has less impact, a poor service experience at a customer’s home has greater consequences. This issue reflects back on the platform, even if we have made every effort to provide the best service.

Infrastructure problems in the country also pose challenges. There is a mismatch between supply and demand in our economy, and Achareh is no exception. We need to grow sufficiently to attract the best talent. This mismatch becomes more apparent during peak demand times, and customers expect quick responses to their orders, while every platform has its capacity limits.

Some challenges also relate to ecosystem issues and larger investment concerns. Although we have been more successful in attracting investment and establishing effective connections compared to some others, these challenges remain.

Do You Plan to Continue Your Partnership with MCI?

Kayson and MCI were and will remain our main shareholders. New investors will also be joining Achareh soon. The reason for the diverse interest in Achareh from investors is that our platform has succeeded in changing and improving people’s lifestyles within its ecosystem.

What Sets Achareh Apart from Its Competitors?

Achareh differentiates itself from competitors through service level, service diversity, top specialists, and customer support. We continuously strive to keep our customers satisfied by providing comprehensive support and various discounts. Our goal is for everyone who uses Achareh to be confident that their needs will be met accurately and with high quality.

What is the Most Popular Service on Achareh?

Our most popular service is moving, which has received the highest ratings from users and is very close to a perfect score. However, in terms of the number of orders, construction services account for the highest volume and are the most in-demand part of Achareh.

How is Pricing Determined on Achareh?

Some of our services have fixed pricing due to the standardized nature of the work. For instance, periodic air conditioner service has a set price. We ask top specialists in the field at the beginning of the year to provide a specific rate for the current year.

Other services have variable pricing depending on various factors but fall within a defined range. For example, painting costs vary based on the type of paint used and whether or not preparation is required. The duration of the work can also affect the cost. In these cases, we provide a price range.

For a third category, where the problem or task is not clearly defined, such as repair services, pricing is determined by the specialist after examining and diagnosing the issue.

What is the Outlook for the Online Service Industry in Iran?

The outlook for the online service industry in Iran appears very promising. In the coming years, a significant portion of the offline market will transition to online services, and top specialists will increasingly move into this space.

Even now, we have specialists who earn up to 200 million Toman per month through Achareh. This trend seems inevitable as people’s lifestyles increasingly move towards digital solutions. With technological growth and increasing trust in online services, this market will continue to expand and play a significant role in Iran’s digital economy.

What is Your Plan for Attracting a Larger Portion of the Traditional Market to Online?

To attract a larger portion of the traditional market to online, we plan to focus more on vertical markets such as construction. For example, we have developed the Achareh Building platform specifically for services related to construction. This specialized focus helps our services gain more attention and shift the traditional market towards online solutions.

We are also working on shaping and strengthening our super app identity. This approach allows us to offer diverse services under one comprehensive platform and encourages customers to use multiple services in one place.

Additionally, we plan to establish connections with third-party organizations to strengthen the link between end-users and the value they receive from our services. The more specialized and effective this connection is, the more successful we will be in transitioning a larger portion of the traditional market to online.