CONNECT WITH US
eCommerce

eCommerce

RXO’s Last-Mile Network Is the Sleeper in C.H. Robinson’s $5.8B Deal

WWD logo

Published on

Add as a preferred source on Google
RXO’s Last-Mile Network Is the Sleeper in C.H. Robinson’s $5.8B Deal

C.H. Robinson’s $5.8 billion acquisition of RXO is about more than adding another freight brokerage operation to its third-party logistics (3PL) offering. It also gives the company a sizable last-mile business serving retailers and e-commerce companies, potentially extending its reach deeper into the journey from distribution center to doorstep.

RXO arranges more than 11 million last-mile deliveries annually for omnichannel and e-commerce retailers, including same-day and next-day shipments and the transportation, assembly and installation of heavy goods such as furniture, appliances and mattresses.

Related Stories

Strong demand and elevated spot rates lifted the Hapag's annual forecast, but the carrier must now submit a more detailed merger proposal to Israeli regulators.
Logistics

Hapag-Lloyd Lifts Earnings Outlook, but Israel Sends ZIM Deal Back to the Drawing Board

DoorDash expects to make 80 percent of the retail orders it handles eligible for Dasher Returns by the end of 2026.
Logistics

DoorDash Deepens Macy's Tie-up and Wants to Pick Up Your Returns, Too

In its annual report, RXO described itself as “the largest provider of outsourced last-mile transportation for heavy goods in the U.S.,” noting that it operates an asset-light service performed by third-party contractors.

The scale of the addition is significant for C.H. Robinson. Ahead of the cash-and-stock deal, the Minnesota-based 3PL forecasted $18.4 billion in gross revenue in 2026, with its business mix weighted toward North American Surface Transportation (73 percent of revenue) and global forwarding (18 percent).

Last-mile delivery is not separately identified as a meaningful component of C.H. Robinson’s pre-deal mix.

RXO, by contrast, is expected to generate $6.8 billion in 2026 gross revenue, with the last mile accounting for 19 percent of its business, behind its trucking brokerage’s 73 percent share.

06 billion driven in 2024. The increase was driven primarily by a 13 percent increase in volume.


Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.