The co-founder of Urban Massage on the gig economy and disrupting the spa industry
Years ago, Jack Tang paid £100 for a massage. But, even though the therapist was at the top of her game, it turns out that she was getting a measly £20 of the total payment.
Tang found out that it’s not uncommon for spas to charge customers huge amounts, and dish out a tiny slice of that payment to the people actually doing the hard work. It was then that this tech entrepreneur started joining the dots – what if therapists were paid properly, and customers could also get a cheaper deal?
Tang, who at the time had already sold a successful business after dropping out of university, got to work to build a platform that could facilitate this. And in 2014, he and his friend Giles Williams launched Urban Massage.
According to Tang, around 80 per cent of people working in the wellness sector are self-employed. “Trainee therapists have to clock-in certain hours, and do commercial work to practise, which means they develop their own client base,” he says.
Up until recently, there were only two conventional routes for qualified therapists: they would either work for a spa where they get paid very poorly, or they work for themselves, which means they have to spend money and time on advertisement to build their own brand – a process which can be both complex and expensive.
But Urban Massage has created a new way of working. As its co-founder points out: “We have liberated therapists from all the admin, so they can focus on doing what they love.”
Because you’re worth it
Each therapist has a profile on the app so they can build their own client base on the platform. Customers select the therapist they want to book based on availability, location, and customer reviews – and the massage therapist comes to them.
It essentially taps the gig economy mentality, giving therapists the flexibility and freedom to choose which hours they want to do. But it’s the earning potential that makes the platform even more appealing, and Tang says experienced therapists can earn as much as £2,000 a week.
“We’ve made massage more affordable, and flipped the business model on its head so that the therapist gets 80 per cent of the sticker price,” he says, pointing out that the platform makes the market fairer and helps therapists realise what they’re worth.
This even comes down to some of the smaller details, such as making sure 100 per cent of a tip goes to the therapist. It might sound simple, but Tang admits that this was tricky to implement because users pre-pay before their treatments (which is important to protect the booking), and tip afterwards, which means the platform incurs another banking fee for the second transaction.
“The engineering team spent about eight weeks refactoring the application and moving hundreds of thousands of credit card tokens from our third party secure providers to make this happen.”
Pressure points
The leisure industry might not be facing the same struggles as the retail sector, but that doesn’t mean it’s immune from the pressures on the high street.
Tech businesses are disrupting the status quo, and the success of Urban Massage – which now has a network of 1,600 therapists – is forcing spas to adapt their business models.
“We are making treatments more accessible, so people can have a good quality massage in their own home, without having to go to a spa,” says Tang. But he also stresses that his business is not in opposition to the high street, and is actually working with some brick and mortar brands – including the likes of Neom Organics and The Organic Pharmacy – to offer spa treatments that are affordable and accessible.
A spa can also use the platform to book therapists on demand, providing a flexible approach to staffing which could be beneficial to the spa’s business. It means that spas operate like venues, and they don’t have to hire lots of in-house staff.
Tang tells me that some Urban Massage therapists are even booked to carry out treatments at spas they used to be permanently based at, but the difference is that they are now getting paid properly.
Power to the people
One of the beautiful things about technology is the way it can empower disadvantaged groups of people by creating opportunities – which is certainly something Urban Massage seems to be harnessing.
Tang talks about the “power of the collective”, which the company promotes through its ambassadors scheme, where therapists vote for a handful of people to represent them – giving a voice to the entire community.
“We’ve got the negotiating power to get some big beauty brands to hold sessions, so our therapists can learn about their products. So while we don’t offer specific training, we work with brands that are experts in their fields.”
The company wants to change the face of this industry for customers too, so that you no longer have to book a treatment weeks in advance, or pay over the odds (Urban offers a massage for as little as £49).
But it’s also about improving transparency. “It’s a hugely fragmented market with lots of micro operators, so customers don’t really know who is good quality and who is not – but we have changed that.”
Knot a problem
Our fast-paced London existence can be extremely taxing on both physical and mental wellbeing, so it’s not surprising that more people want to counteract the stresses and strains of life through wellness treatments.
Businesses like Urban Massage are contributing to the growth of the booming wellness market.
“People are working longer hours, they are stuck at their desk all day, not doing a huge amount of exercise, while everything – like food – is so instantaneous. We are trying to counterbalance that.”
Having spent his working life building new businesses, Tang admits that he understands the stresses of a hectic working life.
I ask how often he gets a massage, and he says he books a deep tissue treatment every two weeks.
“Every time I feel a bit sluggish, or when I’m not operating at my full capacity, I get a massage, and that helps me do my job most effectively – I think it's a way to reset your body.
“I’m usually glued to my phone, so booking a massage means I zone out completely – and it helps me to have a bit of mindfulness.”
This young entrepreneur admits that the daily fight is educating people about genuinely looking after themselves.
“People know they need to eat healthily, but looking after ourselves to improve our mental wellbeing is really low down on our agenda,” he says.
“We see a world where wellness isn’t a gimmick, but is a necessity for people. And by building a tech platform that opens up the market, there’s no excuse for people not to look after themselves.”
Watch this space as the business is not stopping at massages, and plans to offer other treatments such a facials later down the line, as well as expanding beyond its current markets in London, Birmingham, Manchester, and Paris.
Ultimately, it’s all about balance. As Tang puts it: “You can have your fast-paced life, your yoga, your massage, your doughnuts, and that's okay – you should live your life and enjoy it.”