Ingka & Locus: Supercharging AI-Powered Deliveries

IKEA is sharpening its focus on the home delivery experience by acquiring Locus, a logistics technology company based in the US. 

Ingka Investments, the investment arm of Ingka Group and the largest IKEA retailer, confirms the move as part of a broader shift towards owning more of its digital and delivery infrastructure.

Locus’ AI-powered platform adds precision, real-time responsiveness and smarter planning to IKEA’s fulfilment chain.

Controlling a key customer touchpoint

For most customers, delivery is where expectations are highest. Whether it’s a bookcase or a bed, shoppers want to know when it will arrive and that it turns up on time.

In retail, this part of the experience has often relied on a patchwork of third-party providers. IKEA wants to change that.

"This acquisition aligns perfectly with our commitment to improving the customer journey at every touchpoint," says Tolga Öncü, Head of IKEA Retail at 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."

Locus offers an AI-powered logistics management system known as an agentic Transportation Management System. “Agentic” in this context refers to its ability to make intelligent recommendations and adjustments autonomously, rather than needing manual inputs at every stage.

The system connects orders, vehicle capacity and delivery partners into a single plan. Its AI co-pilot identifies risks, suggests next actions and improves service-level agreements (SLAs) – the contractual commitments around service performance. It also reduces unnecessary miles by avoiding inefficient routes.

Currently used in more than 350 deployments across over 30 countries, the platform is built for real-world logistics. With the acquisition, IKEA brings in operational expertise and experience developed across global supply chains.

Scaling smarter delivery at IKEA

The acquisition comes as IKEA’s e-commerce offering continues to grow. Online purchases now represent 28% of total IKEA retail sales in financial year 2024, more than double the 11% recorded in 2019.

As volumes increase, so do the demands on last-mile delivery, the final leg of a product’s journey to the customer.

“Our vision is to create a better everyday life for the many, and that includes delivering products when and how customers want them,” says Parag Parekh, Global Chief Digital Officer for IKEA Retail at Ingka Group.

“This acquisition strengthens the digital capabilities required to meet rising customer expectations, while ensuring the quality and reliability IKEA is known for.”

By integrating Locus’ system, IKEA expects to save around US$100m per year by improving route efficiency, reducing empty vehicle trips and making smarter use of its delivery resources. The result is not only lower operational cost but fewer emissions and less congestion – a nod to IKEA’s environmental goals.

In terms of practical changes for shoppers, IKEA will be able to offer more delivery slots, introduce real-time order tracking and bring more reliability to timing – factors that play a central role in customer satisfaction in online shopping.

Locus remains independent and grows

Though Locus now sits within the Ingka Group portfolio, it remains operationally independent. The company keeps its own brand and leadership, continues serving other enterprise clients and uses the backing from IKEA to expand its teams and product development.

“Joining the IKEA family marks a historic milestone for Locus and the customers we serve,” says Nishith Rastogi, Founder and CEO of Locus.

“This partnership preserves our independence and ensures our perpetuity, while unlocking the scale and resources to serve our global enterprise customers with unmatched research and development. To usher in this new phase, we will expand significantly across product, engineering, and revenue teams, to build a legacy of innovation and impact spanning decades, not years.”

The investment fits within Ingka Group’s wider strategy of building a seamless end-to-end retail experience. Locus complements earlier acquisitions such as Made4net, which focuses on warehouse management, and TaskRabbit, which supports furniture assembly. Each of these steps helps IKEA become more self-reliant and digitally integrated across its operations.

Ingka Investments, which oversees strategic business development across six focus areas, including renewable energy, circular economy and business acquisitions, adds Locus to a growing portfolio of tech-enabled solutions designed to support IKEA’s long-term evolution.

The shift also reflects a trend across retail, where companies are no longer content to leave logistics in the hands of external providers.

As fulfilment becomes a key differentiator, owning and optimising delivery operations is fast becoming essential. Retailers are moving beyond traditional ecommerce, creating what the industry calls “phygital” models – hybrid experiences that blend physical stores and digital services seamlessly.

Locus’ platform, with its AI co-pilot and flexible planning tools, gives IKEA the capabilities to respond faster to changes in demand, reduce its environmental footprint and deliver on customer promises more consistently. It also positions the retailer as a logistics operator in its own right – one that handles its products, stores and delivery chain with equal control.

By keeping Locus independent, Ingka Group secures access to innovation while giving the tech firm space to grow its client base and capabilities.