Ingka Group acquires Locus AI platform to bring delivery route optimization in-house

As the largest Ikea retailer operating across more than 30 countries, Ingka Group managed last-mile delivery through a fragmented network of multiple third-party logistics providers. This outsourced model left the company with limited visibility into delivery performance and little ability to adjust routing or service levels in real time. As e-commerce demand accelerated — online sales reached 28% of total Ikea retail sales by FY2024, up 11 percentage points from FY2019 — the gap between customer fulfilment expectations and the company's actual control over delivery quality became an increasingly significant liability in its customer experience strategy.

Through its investment arm, Ingka Group acquired U.S.-based Locus, an AI-powered logistics software company founded in 2015. The Locus platform applies machine learning and predictive analytics to delivery operations, providing advanced route optimization, real-time shipment tracking, and end-to-end delivery management. Bringing the technology in-house allows Ingka to integrate Locus's capabilities directly into its broader fulfilment stack — which already includes Made4net for warehouse management (acquired 2023) — replacing the previous dependency on disconnected external providers. Locus was structured to remain operationally independent post-acquisition, preserving its ability to serve other enterprise clients and sustain R&D investment, with planned expansion across product, engineering, and revenue functions to support both Ingka's scale and its wider customer base.

The acquisition establishes direct ownership over a fulfilment technology layer that previously sat outside Ingka's control. Key indicators of the demand driving this strategic move:

• Online sales share: 28% of total Ikea retail sales in FY2024
• Online sales growth: 11 percentage point increase from FY2019 to FY2024
• Infrastructure shift: Fragmented multi-provider delivery model replaced by a unified, in-house AI-driven platform

Qualitatively, Ingka now holds direct access to routing logic, service-level configuration, and delivery data that were previously opaque under third-party arrangements — enabling faster iteration on the customer fulfilment experience.

• Acquiring logistics AI outright gives large-scale retailers more durable control over delivery quality than multi-vendor outsourcing, particularly as online sales share grows.
• Allowing the acquired company to remain operationally independent reduces integration risk and preserves R&D capacity — a viable structure when the target has its own enterprise client base.
• Retailers should assess the threshold at which in-house tooling justifies acquisition over SaaS licensing; at 28% e-commerce share and climbing, Ingka's math clearly favored ownership.
• Building a cohesive owned technology stack (WMS, route optimization, at-home services) compounds fulfilment advantage — each layer adds data and control value across the others.