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Ikea enters gig economy by buying freelance labour firm TaskRabbit

Monday, October 2, 2017

Source: The Guardian

Ikea has bought the gig economy odd-jobs company TaskRabbit, becoming the latest retailer to move into offering services alongside products.

 

TaskRabbit, based in San Francisco and set up in 2008, operates in 40 cities in the US and the UK, connecting customers through its app with home maintenance tradespeople who can handle furniture assembly, decorating, cleaning and deliveries.

 

Users flag jobs they want doing, and taskers, as the company refers to them, can select work nearby, apparently choosing the rate at which they will be paid.

 

TaskRabbit will continue to operate as an independent company within the Ikea Group and link up with other retailers. The value of the deal was undisclosed.

 

Ikea joins the likes of John Lewis and Debenhams in seeing services as a route to growth.

 

The acquisition takes Ikea into the gig economy, with TaskRabbit workers classed as independent contractors who work when they want, where they want and at rates they set, but are not necessarily entitled to a minimum wage or holiday pay.

 

Other gig economy employers, including Uber and Deliveroo, have faced court action over the treatment of their workers, some of whom say they are not independent contractors and should receive holiday pay.

 

The buyout comes after Ikea tested recommending TaskRabbit workers to assemble furniture for customers late last year at some of its London stores. 

 

TaskRabbit was founded by the former IBM software engineer Leah Busque. The company has struggled to expand and partnered up to offer its services via Amazon last year.

 

Read more in The Guardian.

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