Dive Brief:
- Ryder System closed on a deal Tuesday to acquire e-commerce fulfillment provider Dotcom Distribution, the company told Transport Dive in an email.
- The acquisition includes a 400,000-square-foot fulfillment facility in Edison, New Jersey, according to a news release. Approximately 100 full-time employees and Dotcom’s leadership team will join Ryder as a result of the deal.
- The move expands Ryder’s e-fulfillment portfolio in health, beauty and cosmetics, part of a strategy to grow and diversify its businesses, according to the release.
Dive Insight:
Ryder has grown its warehouse space in its supply chain business over the years, especially in the U.S.
The Dotcom Distribution acquisition further increases the company’s national footprint. Ryder’s e-commerce and omnichannel fulfillment network now reaches 100% of the U.S. within two days and 60% of the country within one day, according to the company.
The acquisition is a recent addition to Ryder’s growing portfolio of e-commerce and technology companies. In January, Ryder acquired e-commerce and fulfillment services company Whiplash, and in August it bought logistics tech startup Baton.
Ryder supply chain business grows
| Date | Percentage of total consolidated revenue driven by its Supply Chain Solutions | Total U.S. managed warehouse space (square feet) |
|---|---|---|
| 2019 | 29% | 50 million |
| 2020 | 30% | 57 million |
| 2021 | 33% | 68 million |
SOURCE: Ryder annual reports
At the same time, other logistics firms are pursuing their own growth. KAG Logistics entered the Canadian market last month with its acquisition of Connectrans Logistics, and Full Tilt Logistics expanded with a 250,000-square-foot warehouse in Nevada earlier this year.
For Ryder, the Dotcom acquisition means institutional knowledge in the e-commerce field, just as the logistics firm is wading further into the market.
“Dotcom Distribution has been doing e-fulfillment since e-commerce was still in its infancy,” Steve Sensing, president of Ryder’s Supply Chain Solutions, said in a statement. “[CEO Maria Haggerty] and her team bring 22 years of knowledge, expertise, and experience in helping customers weather market fluctuations. That’s a big benefit for Ryder.”
