On-demand utility platform provider TaskRabbit has been acquired by Dutch furniture manufacturer IKEA. TaskRabbit is an online platform that helps its clients hire people to do practically anything, from constructing furniture to holding a queue at a store.
Confirming the news, IKEA stated they are going for 100% acquisition of TaskRabbit’s shares. However, TaskRabbit’s operations will remain completely independent. This indicates that TaskRabbit CEO Stacy Brown Philpot and her team will remain on board, and they will continue to build key partnerships with other retailers in the industry. The news of TaskRabbit’s sale began circulating back in April, when it was looking for strategic buyers, according to sources.
With this acquisition, TaskRabbit gets access to a plethora of opportunities, which will connect consumers to a diverse range of services at affordable prices. Moreover, the TaskRabbit’s employees will now have higher earning potential.
Though details about this transaction were not made clear, TaskRabbit was successful in raising $38 million in its previous fundraising round. Investors who participated in this were Founders Fund, First Round, Floodgate, and others.
Speaking on the deal, Brown said the acquisition is a perfect fit, as IKEA’s furniture is famously difficult to assemble. That’s where an assembler from TaskRabbit will come into the picture, like an on-demand handyman.
IKEA CEO Jesper Brodin said in a press conference: “In a fast-changing retail environment, we continuously strive to develop new and improved products and services to make our customer’ lives a little bit easier.” He added, “Entering the on-demand, sharing economy enables us to support that. We will be able to learn from TaskRabbit’s digital expertise, while also providing IKEA customers additional ways to access flexible and affordable services.”
The transaction was officially signed by the two entities on September 25, and will close some time this month.