Dive Brief:
- XPO Logistics, which provides transportation and logistics solutions, intends to double its current last mile footprint to 85 service hubs by the end of 2018, a company press release reported. The current expansion will bring XPO closer to almost 90% of the U.S. population, thus reducing transit times.
- XPO facilitates roughly 13 million annual home and commercial deliveries, most of which include assembly and installation of large items including appliances and sizeable electronics. Company management considers itself No. 2 in less-than-truckload (LTL) shipments and No. 1 in last-mile logistics.
- The latest hubs are set for Birmingham, AL; Buffalo, NY; Jacksonville, FL; Long Island, N.Y.; Los Angeles, CA.; Milwaukee, Wisc.; Tulsa, OK.; and Washington, DC. Experienced staff perform merchandise inspections, repairs, pre-assemblies and other value-added services before delivery.
Dive Insight:
While last-mile remains the major delivery hurdle, many logistics providers are attempting to win the race.
The proliferation of technology within last mile delivery has helped tighten the link between delivery service providers and customers, an improvement noted by industry investors sinking millions into the field. One analyst suggests that a standoff between those with assets and those with information will determine a last-mile leader, but that idea may already be obsolete.
XPO seems to think so, at least. Not only is the company expanding its hub locations, but is also hinting broadly at its determination to buy into more growth-oriented M&A thanks to its massive $1 billion liquidity. Whether these tactics will set it apart from UPS or FedEx — or rather, how quickly they'll set XPO apart — is uncertain. What is clear is that consumers are benefiting from the industry's competition, receiving goods with increasing speed.