We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » XPO enters same-day delivery field via network of newest acquisition
newsworthy

XPO enters same-day delivery field via network of newest acquisition

April 10, 2015
DC Velocity Staff
No Comments

XPO Logistics Inc. has begun same-day delivery services with its recent acquisition of UX Specialized Logistics, a move that will expand the increasingly diversified service portfolio for Greenwich, Conn.-based XPO.

Bradley S. Jacobs, XPO's founder, chairman and CEO, confirmed that it has begun offering same-day services throughout New York City through the auspices of UX, which it bought in early February for $59 million. Based in New York, UX provides so-called last-mile logistics services for major retail chains and e-commerce companies. As an extension of the last-mile network, UX also offers same-day deliveries.

Jacobs said in an e-mail that XPO plans to leverage UX's network to expand same-day service capabilities to other U.S. markets. UX, which works with independent carrier contractors, has been integrated into XPO's "last-mile" delivery unit, known as XPO Last Mile.

Last-mile delivery services are traditionally associated with the short-haul transportation of heavy-weighted goods like household appliances from the retail store or warehouse to a residence. Last-mile services are gaining prominence as the mechanism to support the explosive growth of e-commerce demand, which puts a premium on super-fast deliveries to urban and suburban destinations.

Manufacturers and retailers increasingly outsource the last-mile delivery function because it is outside their core competency and can typically be executed more cost-effectively by a specialist. It is a specialized and high-margin business that generates billions of dollars in revenue each year. XPO entered the last-mile segment in a big way two years ago when it bought 3PD Inc., a Marietta, Ga.-based firm that was the leader in the field, for $367 million. 3PD was rebranded as XPO Last Mile.

As for same-day services, freight brokers and third-party logistics providers like XPO generally offer the service through networks of contractors.

XPO was formed in 2011 primarily as a freight broker, though it was also involved in freight forwarding and expedited transportation services. Through a series of acquisitions, it has expanded into intermodal, last-mile delivery, contract logistics, transportation management, and cross-border services in the U.S.-Mexico market. Jacobs has said that XPO will pursue an aggressive acquisition strategy as it seeks to hit $9 billion in annual revenue by 2017, and $575 million in annualized earnings before interest, taxes, depreciation, and amortization (EBITDA) by that time.

Transportation Intermodal
KEYWORDS XPO Logistics
  • Related Articles

    Postal Service enters same-day fray with rollout of limited delivery program

    Dropoff expands same-day delivery network

    Best Buy adds 11 cities to same-day delivery network

Recent Articles by DC Velocity Staff

U.S. Xpress makes “significant investment” in self-driving tech vendor

Truckload carrier predicts challenging year ahead for industry

Train kept a rollin’

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Cold chain giant Lineage Logistics buys its own rail operator

  • Outlook 2021: What’s in store for logistics supply chain?

  • Cushman & Wakefield Brokers Sale of 170 Acres plus Lease for 1MSF Build-to-Suit for Home Improvement Retailer in Commerce City, CO.

  • Thriving in the long haul: interview with Colin Yankee

  • Capacity challenges will continue in 2021

Now Playing on DCV-TV

2mw 01 18 21 thumb

LTL Carriers Using Yield Management Techniques to Identify New Accessorial Charges

DCV-TV 4: Viewer Contributed
As we head into 2021, shippers are not too optimistic about negotiating rates with their carriers. The reason for this, as highlighted in the three CODE RED Webcasts we've hosted with our friends from CSCMP and NASSTRAC, is that in today's transportation marketplace, shippers are operating in uncharted waters. With...

FEATURED WHITE PAPERS

  • Proven Benefits: A Compendium of Slotting Optimization Success Snapshots

  • Bridging Information Gaps in Dock and Yard Operations

  • How Intelligent Sensor Solutions Turn Data Into Action

  • Order picking Solutions: Understanding Your Options

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing