Ikea acquires US logistics tech platform to improve home delivery

Swedish home furnishings retailer Ikea advanced efforts to take control over its delivery fulfillment network by acquiring U.S.-based logistics technology company Locus on Tuesday.

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Ingka Group, the largest retailer for Ikea, acquired the AI-powered platform for an undisclosed sum. (Locus raised $50 million in funding in 2021, pushing its valuation to $300 million at the time.) The deal is expected to bolster the furniture retailer’s distribution capabilities.

“This acquisition aligns perfectly with our commitment to improving the customer journey at every touchpoint,” said Tolga Oncu, head of Ikea Retail (Ingka Group). “By bringing Locus’s technology in-house, we’re taking control of a crucial element in our fulfilment chain, allowing us to deliver with greater speed and flexibility to the many.”

The Locus platform provides fulfillment automation, advanced route optimization, real-time tracking and enhanced vehicle utilization. Ikea said leveraging this technology will allow it to increase efficiency throughout its supply chain, from managing capacity to final-mile delivery.

Ikea’s online sales have surged from 11% of total sales in 2019 to 28% last year. The company mostly relies on third-party providers to execute home delivery. This acquisition marks a significant shift, bringing a critical part of the fulfillment process in-house.

Parag Parekh, global chief digital officer for Ikea Retail, said the acquisition strengthens the company’s digital capabilities, which are needed “to meet rising customer expectations, while ensuring the quality and reliability Ikea is known for.”

Ingka Group has made other acquisitions to firm up Ikea’s distribution network. In 2023, it acquired warehouse management software provider Made4net, and in 2017, it purchased furniture assembly company TaskRabbit.

Ikea announced a $2.2 billion-plus, three-year investment in its omnichannel strategy in 2023. That plan included opening new stores and expanding its fulfillment network.

Following the acquisition, Locus will remain operationally independent, continuing to serve its existing enterprise clients in addition to Ikea.

Locus Founder and CEO Nishith Rastogi said the partnership “preserves our independence and ensures our perpetuity, while unlocking the scale and resources to serve our global enterprise customers with unmatched research and development.”

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