what is a service company

What is Meant by a Service Company?

What is Meant by a Service Company?- - Whizmates, do you realize that many service companies are already in everyday life? Look around you. What kind of service provider companies do you often find?

The main element of a service company is the service system provided to consumers. Simply put, a service company is one of the online motorcycle taxi services currently popular.

The service that is provided by a service company to consumers will create a long-term mutual relationship between the service company and consumers.

Service companies are usually founded by individuals or groups whose main activity is providing service or selling services, Whizmates.

To understand more about the definition, characteristics, types, and examples of service companies, read this article to the end! 

Also Read: 10 Rare But Needed Business Ideas. What is it?


What is Meant by a Service Company?

In general, Marketing Expert, Christian Grönroos, , defines a service company as a business that does not provide a product in physical or tangible form but instead in the form of services that consumers need. According to Study Finance, , a service company provides services to customers.

Now, these services usually involve skills that each service company offers. The goal is to obtain profit (income) from the services provided.

For example, we can find public transportation services to help us reach a destination in daily life. Rapid technological advancements allow you to order transportation services using a smartphones.

It is clear, right? The products produced are intangible, but for the smooth running of their business, service companies still need tangible products to support their operational activities. 

Characteristics of Service Companies

The Ministry of Education and Culture (Kemendikbud) explains that there are at least four characteristics of service companies that you can understand as follows:

1. Non-Physical Products

The first characteristic that is easy to see is that the products are not tangible or not in a physical form, Whizmates. The services they offer can only be felt through their benefits.

2. Offering Services

Furthermore, service companies only offer services to consumers. The main activity is not selling or producing goods. Therefore, service companies can only help consumers in their daily lives.

3. It cannot be Stored

It is also one of the characteristics of service companies. Consumers can only access it, use their facilities, and feel the services' benefits. Service products also cannot be stored or owned.

4. Diverse Services

Unlike companies that produce physical goods, the following characteristic of service companies is diverse services tailored to consumers' needs. It means that each service offered requirements to have standardization. Everything depends on consumers' tastes and needs.

Types and Examples of Service Companies

Several types and examples of service companies in Indonesia are divided into several categories. Let's see the explanation!

1. Repair and Cleaning Service Company

There are many services provided by repair and cleaning service companies. Usually, these companies are integrated with other products—for example, vehicle repair services, electronic product services, and service centers.

Cleaning services include laundry services for clothes and shoes, home cleaning, garbage transportation, etc.

2. Educational Services Company

The next type of company is a company engaged in education. Learning activities are not only done in traditional schools; you can also get additional knowledge from training courses or tutoring institutions.

Currently, there are many Skill training institutions that you can follow online , and you will receive a certificate upon completion. 

3. Logistic Service Companies

Who here often shops on line? You have made an online purchase once or twice a month, right?

The goods sent from online stores will use logistics services to reach consumers. When you want to send goods or packages to friends who are out of reach, you will use logistics services to facilitate delivery.

4. Transportation Service Company

The following example of a service company is a transportation service company. Unconsciously, this transportation service has been around for a long time, accompanying our lives.

It's just that in the past, it was still done traditionally, such as using a pedicab, a three-wheeled taxi, and a motorcycle taxi. In today's digital age, you can already order a motorcycle taxi online, making it easier to move around the door to door.

5. Travel Service Company

Have you ever traveled far with your parents or friends using travel services? Yes, this travel service is a company that provides tourism services. Examples include travel agents or tourism travel bureaus.

Usually, this service company has two tour activities: package tours arranged by agents or receiving consumer request .

6. Medical Services Company

When you get sick, medical service companies are needed. Of course, this service is always essential and needed by people.

Medical services include health consultations, health care, therapy, and other health services.

Currently, health services can also be accessed online, Whizmates. Several applications provide health services that allow you to consult with a doctor.

7. Financial Services Company

Finally, the financial services company is already very familiar in our lives. You can visit the physical branch of a banking company or use a financial application.

The services provided include payment transactions, sending and receiving money, bill payment, giving pocket money to children, and education costs.

Also Read: Do You Get Paid During On-the-Job Training? Find Out The Rights and Responsibilities!


That is the definition, characteristics, types and examples of service companies that you can understand. If we look back, service companies are very important to help us in our daily lives, yes, Whizmates. One of them is being able to meet your needs.

The presence of a service company in fact also affects your finances, you know. The more services you need, the more money you spend. So, so that your finances don't go to waste when you meet those needs, let's try to manage your finances using Whiz. the Whiz Financial App. provides various features to manage your finances. Have you tried yet?

DOWNLOAD WHIZ AND MANAGE YOUR FINANCES EASILY!