Ikea investment arm acquires AI-powered logistics firm to improve home delivery

Ingka Investments, the investment arm of Ikea-owner Ingka Group, has acquired US-based logistics technology company Locus.

The software company offers a sophisticated AI-powered logistics management platform, featuring advanced route optimisation, real-time tracking, as well as the smart use of vehicles and resources.

Ingka Investments said the purchase will strengthen Ikea’s digital capabilities, helping it to “transform home delivery” and give Ikea more control over a “crucial moment” in the customer journey.

By integrating these capabilities, the company said it would better enable Ikea to enhance efficiency across the supply chain from capacity management and optimisation to last-mile execution.

It added that the partnership not only strengthens how Ikea delivers home furnishings to customers globally but also supports its ambition to create a faster and smarter distribution network.

Historically Ikea has relied on multiple third-party providers for home delivery services, with the company describing the acquisition of Locus as a significant move towards making shopping and delivery even smoother for its customers.

Following the takeover, Locus will remain operationally independent while continuing to grow its services for partners beyond Ingka Group.

Ingka said this approach supports ongoing innovation and growth for both companies whilst contributing to Ikea’s broader digital transformation journey.

Online sales currently made up around 28 per cent of total Ikea retail sales in 2024, an increase from 11 per cent in 2019.

Ikea said the integration of Locus’s technology will strengthen the company’s ability to meet this growth and complement other recent technology investments such as warehouse management firm Made4net.

“This acquisition aligns perfectly with our commitment to improving the customer journey at every touchpoint,” said Tolga Öncü, head of Ikea retail, Ingka Group. “By bringing Locus’ 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.”

In January, Ingka Investments announced a €1 billion investment in companies that are increasing recycling infrastructure.

The company said that the investment will support the transition towards a circular economy by supporting the recycling of more end-of-life products into secondary raw materials.

It added that through the new investment it aims to grow profitable businesses that avoid millions of tonnes of CO2 emissions and increase the availability of recycled material on the market.