Why is Ikea buying TaskRabbit? Think about it

Isaac Cain
September 29, 2017

Ikea furniture just gotten a little easier to assemble.

An innovative sharing-economy on-demand platform, TaskRabbit connects consumers with skilled Taskers to handle everyday needs such as furniture assembly, moving and packing, general handyman work, and home improvements.

TaskRabbit will remain an independent subsidiary under Ikea's umbrella, and Stacy Brown-Philpot will stay on as CEO, according to Recode. As the Associated Press reports, IKEA was testing the use of TaskRabbit in its London stores late a year ago, and it's planning to roll out a TaskRabbit add-on at more United Kingdom and USA stores soon.

Asked about terms of the deal, an Ikea spokesperson replied: "We do not comment on transaction details, process or valuation".

Ikea Group, the parent of the Top 100 company's US operations, has signed a deal to acquire a 100% stake in San Francisco-based TaskRabbit, the online business that matches freelance labor with demand.

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The Taskrabbit acquisition takes Ikea into the world of the "gig economy", with workers for the service all independent contractors rather than employees. With Ikea's large footprint - it operates 357 stores in 29 countries - Ikea said the partnership could expand to other countries soon. At the same time, operating independently, TaskRabbit "will continue to partner with other retailers and commercial partners", the company said.

As one would expect, Ikea plans to use TaskRabbit to offer its customers a more integrated helpline when it comes to putting together Ikea's infamously complicated furniture items.

About the IKEA Group IKEA Group is wholly owned by INGKA Holding B.V. and its controlled entities. IKEA Group offers well-designed, functional and affordable home furnishing products at prices so low that as many people as possible will be able to afford them.

TaskRabbit operates in 40 cities across the United States and in London, UK, and is headquartered in San Francisco, CA.

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