Logistics Newsletter - July 2024

M&A, JVs, and Alliances

Parcel delivery startup Delivered buys Point Pickup’s assets?

• Delivered, a package delivery startup has purchased the assets of the recently shuttered same-day delivery service business Point Pickup Technologies for $100,000
• Point Pickup provided delivery services across the U.S. for companies like Walmart, Kroger, and The Home Depot
• Delivered CEO Andrew Hurst stated that the company is exploring various ways to leverage Point Pickup’s assets, including same-day services from Delivered customers' stores and providing additional delivery capacity during high-demand periods like peak season
• Point Pickup has raised a total funding of $30.1MM to date

UPS to sell Coyote Logistics to RXO

• UPS sold its asset-light freight brokerage business, Coyote Logistics, to RXO for $1.03BN through a combination of debt and equity
• Coyote is a leading global third-party logistics provider, matching shippers and carriers with supply chain solutions including over 10000 shipments daily
• RXO expects the transaction will enhance its market position, diversify its customer base and broaden its carrier network
• Coyote generated about $3.2BN in revenue last year and also reached ~$470MM in gross margins and $86MM of adjusted EBITDA
• “RXO’s highly accretive acquisition of Coyote will immediately increase the scale of our brokerage business, providing customers with more capacity across a wider array of power lanes,” said Drew Wilkerson, CEO of RXO. “RXO will realize significant synergies from the acquisition by quickly integrating Coyote’s business into RXO and leveraging our cutting-edge technology.”??
• In the last three years, UPS has completed six transactions

Descartes acquires BoxTop Technologies

• Descartes, a global SaaS provider of routing, tracking, invoicing and customs tools has acquired shipment management solutions provider BoxTop Technologies for $13MM, funded through cash on hand
• BoxTop’s technology provides small and midsize logistics services providers digital tools to manage the full life cycle of shipments
• “BoxTop has an excellent solution for small- to mid-sized LSPs and we see an opportunity to integrate it with more solutions on the GLN,” said Scott Sangster, General Manager of logistics services providers at Descartes. “This will help us deliver more value to BoxTop customers and expand the geographic footprint into more countries in Europe.”
• In the last three years, Descartes Systems Group has completed nine transactions?

FLS Transportation acquires ATL

• FLS Transportation, a third-party logistics provider has acquired broker Anderson Transportation and Logistics (ATL)
• ATL provides flatbed, dry van truckload, less-than-truckload, container drayage and hot shot transportation and logistics services
• The deal enhances FLS scale in TL brokerage, adds flatbed expertise to its network, and boosts the combined entity's revenue to around $600MM
• “The synergy between FLS’s extensive cross-border expertise and ATL’s robust flatbed carrier network will considerably boost our scale and coverage, enabling both companies to broaden our service offerings to our existing customer base,” said FLS CEO John Leach

OneRail acquires Orderbot to revolutionize omnichannel fulfillment

• OneRail, a leading last-mile delivery fulfillment solution has acquired Vancouver-based Orderbot
• Orderbot is an enterprise Inventory and Distributed Order Management solution, serving market-leading brands, such as Staples Canada, Petsense, Red Hat and many others
• This strategic acquisition combines Orderbot’s sophisticated inventory and order management capabilities with OneRail’s extensive OmniPoint cloud-based last mile operating system and delivery network, creating a powerful end-to-end solution that streamlines fulfillment processes, reduces costs, improves order accuracy and enhances customer satisfaction
• OneRail Founder and CEO Bill Catania, said “Integrating Orderbot into OneRail provides our clients with a unified solution, which optimizes every step of the fulfillment process, whether eCommerce order shipping from a warehouse or DC, a localized delivery from a store or warehouse, or other store fulfillment options, including ship from store and buy online/pick up in store.”
• OneRail has raised a total funding of $67.5MM till date

Fr. Meyer’s Sohn acquires compatriot project logistics company Breeze

• Fr. Meyer’s Sohn, a Hamburg-based logistics company, has acquired a majority stake in Hamburg company Breeze (Germany), a specialist in project logistics
• The acquisition strengthens Fr. Meyer’s Sohn’s position in the project logistics sector, allowing them to offer a wider range of services and cater to increasingly complex client demands. Breeze, in turn, gains access to a broader network and resources, enabling them to expand their global footprint and service offerings
• “The participation fits perfectly into our existing network and is a very good complement to our global activities. The work on worldwide joint projects will be further expanded,” says Heiko Voigt, Managing Director of Fr. Meyer’s Sohn

Gatik and ITOCHU announce new strategic alliance

• Gatik, a middle-mile logistics company formed a new strategic alliance with ITOCHU, a Japanese trading and investment company to accelerate the future of B2B short-haul logistics
• ITOCHU Corporation will invest in Gatik to accelerate the rollout and expansion of Gatik's autonomous delivery network throughout North America, therefore mitigating the growing constraints facing the logistics industry, such as the surge in e-commerce demand, the scarcity of crucial drivers, and the rise in operating expenses
• Gatik's SVP of commercialization and operations Philip Reinckens, said “We’re thrilled to strengthen our relationship with ITOCHU, further solidifying Gatik’s position as the leading provider of autonomous transportation as a service for the middle mile. This partnership is another example of the growing momentum and investment behind our technology and operations and a testament to the increasing demand for safe, reliable autonomous logistics.”

Stuart and Nash collaborate to enhance last-mile deliveries

• Last-mile tech logistics specialist Stuart has partnered with delivery orchestration platform Nash to support merchants across restaurants, grocery, retail and e-commerce to optimize local delivery operations and accelerate growth
• By integrating Nash’s intelligent dispatch strategies and automation technology with Stuart’s on-the-ground network of independent courier partners, businesses will gain full visibility and control over the delivery process from end-to-end, making it simpler to manage both recurring and one-off deliveries
• “The capability to tailor delivery to suit the unique size, reach and needs of any one business is key to achieving success and sustainable growth. We’re excited to be starting a new chapter with Nash, combining our logistics and technology abilities to improve the delivery experience for both businesses and consumers.” said Cornelia Raportaru, CEO of Stuart

Cass, FreightWaves SONAR partner on supply chain intelligence

• Cass Information Systems, a premier provider of freight audit and payment solutions and FreightWaves SONAR, the leader in supply chain intelligence, announced a strategic partnership designed to benefit the freight and logistics industry
• Through the arrangement, Cass's clients will have access to their data on the SCI platform, enabling them to compare service and cost indicators among their truckload freight networks. In addition, they will be able to monitor their financial risk and Scope 3 carbon emissions, which are emissions produced by third parties in conjunction with activities related to a reporting company
• Tony Urban, Executive Vice President at Cass, said “This partnership is exciting because it gives Cass clients a pathway to further optimize the data assets they gain through the freight audit and payment process. Adding SONAR SCI to our Decision Intelligence Suite is extremely powerful for those interested in staying vigilant over their transportation costs — which is all of our clients.”

Albertsons and Grubhub partner for grocery delivery services in the U.S.?

• Grubhub has partnered with Albertsons to offer grocery delivery services from the supermarket chain
• Grubhub's agreement enables users to place grocery orders from almost 1,800 of Albertsons' roughly 2,200 stores
• The collaboration will see Albertsons bring its ACME, Albertsons, Jewel-Osco, Safeway, Shaw’s, Tom Thumb and Vons store banners to Grubhub’s marketplace for delivery
• Grubhub VP Craig Whitmer, said: “We are pleased to grow our grocery offering with Albertsons Cos, one of the leading grocery retailers in the US, and allow customers to conveniently place their grocery orders within Grubhub. Through this exciting partnership, we are giving consumers more choices while maximizing value so that they find exactly what they need on Grubhub delivered right to their door.”?

Sector news

Zepto raises $665MM in Series F funding

• Zepto, a Mumbai-based 10-minute delivery app that sells and delivers everything from grocery items to electronic gadgets to consumers, has raised $665MM in a new round of funding, at a valuation of $3.6BN
• Glade Brook, Nexus and StepStone Group co-led the Series F round. Avenir, Lightspeed and Avra as well as existing backers Goodwater, Lachy Groom and Contrary also invested in the round
• “In India, there is a culture of buying hyper-locally. This doesn’t really exist in other parts of the world. Customers in India buy small-ticket items multiple times a week hyper-locally, and quick commerce gives them hyper-local, high-proximity and low-ticket use cases. No other format in grocery, even in the offline world, has been able to make similar offerings to consumers.” said Zepto’s Co-founder and CEO, Aadit Palicha

CargoSense raises $8MM in new funding

• Supply chain automation firm CargoSense has raised $8MM in Series A to enhance Supply Chain Automation
• The new funding will help expand its partner network of integrated management systems, data sources, and industrial IoT platforms available to digital agents running on the CargoSense Visibility operating system
• The round was led by Lanza techVentures along with participation from Merck Global Health Innovation Fund?

Private Equity Firms invest in RPM Freight Systems?

• Michigan-based RPM Freight Systems, which specializes in logistics for the automotive industry is to receive backing from private equity firms Trive Capital and Bluejay Capital Partners
• RPM plans to use the funds to bolster its technology platforms and increase its headcount thereby expanding its operations
• “The support and resources of these two firms should accelerate our growth trajectory by enhancing our service capabilities and unlocking new opportunities in North America and Europe,” said RPM Founder and CEO Barry Spilman

Drone logistics startup Skye Air raises $4MM in Series A round

• Skye Air, a SaaS-based autonomous logistics solution provider, has raised $4MM in its Series A round
• The round saw participation from Mount Judi Ventures, Chiratae Ventures, Venture Catalyst, Windrose Capital, Tremis Capital, Faad Capital, Misfits Capital, Hyderabad Angels, Soonicorn Ventures and other existing investors, family offices and angels
• The proceeds will help the startup expand its last-mile network across different cities for healthcare, e-commerce, and quick-commerce deliveries

Amazon to invest €10BN in Logistics and Cloud Services across Germany

• Amazon announced its plan to invest €10BN in its German operations to foster innovation and support the expansion of its Logistics network and cloud infrastructure across the country
• As part of this investment, AWS plans to invest €8.8BN by 2026 to build, maintain and operate its cloud infrastructure for the AWS Europe (Frankfurt) Region
• The announcement increases Amazon’s planned investments in Germany to €17.8BN, following the €7.8BN AWS? European Sovereign Cloud investment
• This investment will meet the growing demand for AWS technologies in Germany

Rohlik announced $170MM in new funding

• The Czech grocery delivery company Rohlik announced $170MM in new funding
• The fresh funds will be used to expand its model in Europe, with a target of launching in 10 more cities in the next six years
• Alongside service expansion, it wants to license its logistics and analytics software, as well as robotics for sorting and picking to other delivery players to build out their own local networks and delivery operations

Qargo raises €12MM in Series A funding

• Qargo, a transport management solution for the logistics industry, raised €12MM in Series A funding led by Balderton Capital
• Qargo offers a SaaS transport management solution that integrates with customers’ systems to support their software needs, helping them plan loads, optimize stops and distance, and automate administrative tasks
• The new funding will be used to launch in new markets, develop the product and strengthen the engineering team to keep up with its fast-growing customer base

AI-powered supply chain intelligence startup Prewave raises €63MM

• Vienna-based Prewave, an AI-powered supply chain intelligence startup secured $67MM (~€63MM) in a Series B funding round, led by the global investment firm Hedosophia
• Existing investors, including Creandum, Ventech, Kompas, Speedinvest, and Working Capital Fund, participated in the round
• The Austrian company will use the new funds to fuel global expansion and support further product R&D amidst a threefold increase in revenue in 2023

FedEx explores divestment of Freight business

• FedEx is conducting a strategic analysis of the company’s less-than-truckload segment and its relative value to the company, suggesting that it could be sold or spun off so the company can focus on its parcel and logistics business
• “With the recent completion of the FY 2025 planning process, we have turned our focus to the next phase of our long-term stockholder value creation plans. As a part of this work, our management team and the board of directors, along with outside advisers, are conducting an assessment of the role of FedEx Freight in our portfolio structure and potential steps to further unlock sustainable shareholder value,” CEO and President Raj Subramaniam said on a call with analysts following the announcement of fourth-quarter results. “We’re committed to completing this review thoroughly and deliberately by the end of the calendar year.”

Shuttered California LTL carrier files for bankruptcy

• Tony's Express, an LTL carrier based in Fontana, California, filed for bankruptcy protection over three months after it unexpectedly stopped operations?
• “The current market just didn’t support our ability to operate and be a profitable company, and the cost of fuel in California made it very difficult,” said John H. Ohle, President and sole shareholder of Tony’s Express “We were in very serious discussions with two different companies about coming in and partnering or taking over Tony’s, and those fell apart at the very end, and literally, it was a last-minute decision.”

Lineage files registration to go public

• One of the biggest logistics and cold storage firms in the world, Lineage, has submitted a registration statement in order to seek an initial public offering
• The business released a statement announcing its intention to list its common stock under the " LINE " ticker on the Nasdaq Global Select Market. Furthermore, the business stated that there can be "no assurance" on the quantity or timing of the offering. In April 2024, the corporation changed its name from Lineage Logistics to Lineage.
• “We are fond of saying that our IPO is the opposite of an exit. It is a new beginning,” Lineage Co-founders Adam Forste and Kevin Marchetti said in the Securities and Exchange Commission filings made as the company pursues its IPO.

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