XPO Logistics revealed the name of its latest spinoff, crowning it RXO, in a news release Tuesday.
The development — coupled with a website launch — comes as XPO moves toward creating a new business focused on its brokerage services.
RXO has yet to launch, but in May it named Drew Wilkerson as the planned CEO. Then in June, the company identified Lou Amo as the spinoff’s president of truck brokerage. It's also named Yoav Amiel as the chief information officer.
The truck brokerage will offer services for managed transportation, last-mile logistics and global forwarding. The name, RXO, stands for “reliability multiplied by outperformance,” and the business will have the tagline, “Massive capacity. Cutting-edge technology,” XPO said in a statement.
The spinoff seeks to showcase automation through XPO Connect, a technology platform that tracks deliveries up to the minute, the company said in March. The move aligns with XPO CEO Brad Jacobs’ push for technology in the business.
This is part of XPO’s efforts to further concentrate its services into separate companies. Last August, XPO completed its contract logistics spinoff with GXO Logistics. XPO sees spinning off its businesses as a way to boost value for itself and the spun-off companies.
Earlier this year, the company said it expected to complete the then-unnamed spinoff, RXO, in the fourth quarter of 2022 while also divesting its European business and North American intermodal operation to “further unlock value for XPO stakeholders.” Tara Mullins, XPO Logistics director of public relations, said Wednesday that its Q4 target completion date for the spinoff remains unchanged.
XPO isn’t the only company spinning off parts of its business. In December, Daimler completed its spinoff of Daimler Truck, which the company said would help its zero-emission vision. The company has a sales goal of shifting to 60% battery and fuel cell vehicles by 2030.
