![]() “Both LaserShip and OnTrac have exhibited substantial growth in their ecommerce delivery businesses in 20 with significant new customer wins and substantial increases in delivery volumes,” Moody’s said. At the same time, analysts sounded a note of caution in terms of the combined company’s ability to maintain current service levels as it scales, as did Skiver. Moody’s said it expects pursuit of national coverage to continue in 2022, through further acquisitions or expansion of existing assets or both. In a note to investors, Moody’s said the acquisition of OnTrac was a “transformative step” toward being a national player by combining east and west coast networks. But the idea was never workable in terms of network integration, revenue sharing and how the partnership would handle customer relationships. There has been industry talk for several years about regional carriers joining forces to stitch together a national network and seriously challenge UPS and FedEx. Specifically, Skiver added expansion into new markets like Dallas and Chicago could lead to profitable growth for LaserShip. “There should be opportunity to grow volume with existing LaserShip customers, and acquire new ones, from East Coast/Midwest distribution centers to the West Coast,” he said. One immediate advantage gained, Skiver said, was added linehaul capability for OnTrac, which currently relies on large shippers to bring volume into its network. “This decreases the value of a national, integrated network – another reason LaserShip doesn’t need immediate national coverage.” “We are at the beginning of a shift in package delivery, where local and regional volume will continue to grow as a percentage of total, with inventory moving closer to demand,” Skiver shared in a LinkedIn post. In the short term a combined LaserShip/OnTrac is certainly poised to steal share away as evolving network configurations bring more volume closer to end customers in high-demand areas, said Nate Skiver, founder of LPF Spend Management. ![]() ![]() ![]() LaserShip Chief Commercial Officer Josh Dinneen told the Wall Street Journal that the combined company’s 100+ sorting and delivery hubs in 30 states and the District of Columbia will get it closer to offering “a coast-to-coast solution which doesn’t exist outside UPS or FedEx.” ![]()
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