Ikea has bought TaskRabbit

Swedish home goods giant Ikea Group has bought TaskRabbit, according to sources close

to the situation. The price of the deal could not be determined, but the contract labor marketplace company has raised about $50 million since it was founded nine years ago. Sources added that TaskRabbit will become an independent subsidiary within Ikea and that CEO Stacy Brown-Philpot and its staff would remain. Sources also noted that Ikea would add capital to the company, although that amount could not be determined. TaskRabbit, which is now profitable, will also be able to strike other partnerships, such as one it already has with Amazon. TaskRabbit is one of the best-known startups in the so-called “gig” economy that links freelance workers with jobs, from handymen to movers to assistants. It has about 60 employees, but over 60,000 independent workers use its platform. The purchase of TaskRabbit was fueled by Ikea’s need to further bolster its digital customer service capabilities to better compete with rivals likes Amazon, which has stepped up its home goods and installation offerings. The purchase is Ikea’s first step into the on-demand platform space. TaskRabbit had already struck a pilot partnership with Ikea around furniture assembly in the United Kingdom and also had marketed its workers’ ability to put together Ikea items in the U.S. and elsewhere. But a purchase of TaskRabbit will get Ikea even more deeply into the tech space, although it has not been without some tech innovation of late. The company — which has sales of more the $36 billion annually and 183,000 workers — recently announced an initiative to shift its 389 stores worldwide to electric car transportation and infrastructure. And this week, it released a nifty augmented reality app for the Apple iPhone, called “Ikea Place.” Using the phone’s camera, a customer can scan a room and then place Ikea furniture virtually to see how it looks (see below). It has gotten positive reviews.                                                                                                                       https://www.recode.net/2017/9/28/16377528/ikea-acquisition-taskrabbit-shopping-home-contract-labor