By: Teri Bernstein
from the LA Times
Swedish home furnishings company, IKEA--famous for its meatballs as well as its assemble-it-yourself bookshelves--recently signed an agreement to purchase TaskRabbit. TaskRabbit is a San Francisco company that provides a platform by which various services can be arranged with independent contractors.
When a company buys another company like itself, it is horizontal integration. When it buys its suppliers, distributors, or servicers, it is vertical integration, which applies to the TaskRabbit purchase. We can't get all the details of the purchase, however. IKEA--which is controlled by a trust based in Holland--has purchased a corporation that previously had been funded by private venture capital. Because IKEA is also not publicly traded, it can choose NOT to disclose the price it agreed to pay for TaskRabbit.
The deal is expected to be completed sometime in October, but TaskRabbit will continue to operate autonomously.
Source: "IKEA enters "Gig Economy" by Acquiring TaskRabbit," by Tiffany Hsu, New York Times, September 28, 2017.
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.