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OnTrac and LaserShip Merger: What You Need to Know

OnTrac and LaserShip Merger: What You Need to Know

What do you get when two last-mile delivery services join forces? We’re not sure yet…

LaserShip acquired OnTrac Logistics for $1.3 billion. Combined, they’ll become the largest regional parcel carrier in the U.S. With LaserShip’s foothold in the East Coast and South and OnTrac servicing the West Coast, only ten states extend outside their coverage area.

The two carriers’ expansions have grown out of a demand for different shipping options outside of FedEx and UPS. This is certainly on par with what we’ve seen happening in the shipping industry over the last several years—a trend that was only accelerated by the COVID-19 pandemic.

With the rise of eCommerce, FedEx and UPS have struggled to keep up with demand. To offset their own challenges, they’ve been putting more and more pressure on the businesses they serve. This has included new surcharges, parcel limits and record price increases.

Combined, LaserShip and OnTrac have a network that extends beyond those of other regional competitors.  

While this move still has the duo far from making a dent in the $84 billion revenue UPS and FedEx earn respectively, it gives small businesses a cheaper alternative—and a fighting chance.