Ikea pilots same-day delivery in Hyderabad, hits 100% EV delivery goal

As part of its sustainability strategy, Swedish furniture giant Ikea has committed to entering all new markets, including the Delhi-NCR region, with an EV-first approach

Swedish furniture giant Ikea announced on Tuesday that it has begun piloting same-day delivery services in Hyderabad, with plans to expand the initiative across all its markets in India over the coming year. This move aligns with the company’s ongoing efforts to enhance customer convenience and bolster its delivery capabilities across the country.

In addition to the same-day delivery pilot, Ikea India has also transitioned to 100 per cent electric vehicle (EV) deliveries in Bengaluru, Hyderabad, and Pune. This is part of the company’s commitment to create a sustainable value chain. The company aims to reach the same goal in Mumbai within the next few months.

As part of its sustainability strategy, Ikea has committed to entering all new markets, including the Delhi-NCR region, with an EV-first approach. This strategy reflects Ikea’s dedication to reducing its carbon footprint and promoting environmentally friendly practices in its operations.

“For Ikea, a sustainable value chain is an essential part of our growth journey. This is just the first of the many milestones in that effort, and we are proud to lead the EV journey from our foundational years in India,” said Susanne Pulverer, CEO of Ikea India. “We strongly believe that profit and the planet can be co-created and will continue to lead with this mindset.”

Ikea’s transition to electric last-mile delivery began in 2019 with the introduction of three-wheeled electric rickshaws that delivered thousands of orders each month. To accommodate larger deliveries, the company has also integrated retrofit trucks and developed in-house charging infrastructure for its EV fleet.

Ikea to establish warehouse in Gurugram

Ikea currently operates large-format stores in Hyderabad, Navi Mumbai, and Bengaluru, along with two smaller city stores in Mumbai. As part of its expansion in India, Ikea has partnered with international logistics firm Rhenus to enhance its delivery services in the Delhi-NCR region. This collaboration will see the establishment of a 150,000-square-foot warehouse in Gurugram, capable of storing and fulfilling over 7,000 products. The warehouse is expected to be operational by early next year, enabling seamless doorstep delivery and 24-hour order fulfillment for customers in the region.

Ikea’s expansion plans in India also include the opening of two shopping centers with integrated stores in Gurugram and Noida. The Gurugram project, which is expected to launch next year, represents a significant investment of Rs 7,000 crore.

Expansion plans in India

Ikea first entered India with the opening of its Hyderabad store in 2018. Since then, the company has committed to investing Rs 10,500 crore over its initial 10 years in the country, a plan that will be completed with the launch of the NCR project.

Looking ahead, Ikea is exploring further expansion in India, with cities like Pune, Chennai, and Kolkata on its radar. “We are looking at the next level of investment to further build Ikea’s presence in India, to expand volumes and increase sourcing,” said Pulverer. “Beyond the NCR, Pune and Chennai are of interest. Kolkata is also on our radar, but it will be a stepwise approach.”