The first acquisition IKEA ever made was one that might seem antithetical to its essential value proposition. It purchased TaskRabbit, a gig-based company that provides assembly and other in-home services to busy or inexperienced consumers. TaskRabbit freelancers will come to people’s homes to mount televisions or move furniture; since its acquisition by IKEA, they have greatly expanded the frequency with which they assemble the notoriously frustrating furniture that the international retailer sells. Putting together an IKEA table or bookcase was once part of the experience, but it was one of the least popular parts. Noting the growing competition in the online retail market for furniture, IKEA determined that to retain its market share and position, it needed to make that element more appealing. Thus in stores and online, IKEA shoppers come across information about how to hire a TaskRabbit worker to assemble the furniture, demonstrating to them in advance that IKEA is helping consumers avoid this pain point in their purchase process. The success of adding this service also has prompted IKEA to consider other ways it can expand its service provision through TaskRabbit, such as adding design professionals who will come to consumers’ homes to help them lay out and coordinate what they have purchased. Another possible extension would provide repair services if a chair leg breaks or a table becomes wobbly. Such innovations for IKEA appear to be inspired by the vastly increased customer data it has obtained through its purchase, such that by accessing TaskRabbit’s databases, it knows which services customers need the most. Overall then, the acquisition seems to be a boon, granting IKEA a new source of revenue and more in-depth consumer information, while simultaneously giving IKEA fans a convenient way to get their purchases assembled and ready for use.

Source: Reuters, February 11, 2019