Ryder System, one of the largest service providers for the delivery of large and bulky cargo at the last mile, announced On Tuesday, it expanded its last mile network by adding regional distribution centers in the Nashville, Tennessee, and Boise, Idaho areas.
The first facility, located near downtown Nashville in nearby Smyrna, opened in February. This place has 100,000 square feet of space with room for expansion, Ryder (NYSE: R) said. A second facility, near Boise in Caldwell, opened earlier this month in an area of 70,000 square feet. Both regions are among the 20 fastest growing districts in the country.
In total, Ryder’s last mile network includes more than 100 distribution centers. These facilities provide two-day delivery to 95% of the U.S., including Hawaii and Puerto Rico.
Watch: What’s new with Ryder?
“We decided to invest in the Nashville and Boise markets for this latest expansion of our last-mile delivery network because it is in line with our broader strategy of constantly placing our customers closer to their end consumers,” said Steve Sensing, president of supply. chain solutions for Ryder. “With population growth and rapid access to road and rail networks, these two new markets are increasing the speed of market entry, which is crucial in today’s competitive environment and vital to our customers’ growth strategy.”
Ryder’s Last Mile offer includes four shipping options. Customers can choose to have parcels delivered to the front door, through their doorstep or in a room of their choice – or they can allow their suppliers to assemble, connect and install entirely through the white-gloved delivery option.
Ryder first began strengthening its last mile network in 2018 purchased operator of the last mile of MXD Group for $ 120 million. This transaction also gave Ryder the keys to the MXD network of 109 e-commerce centers in the US and Canada.
Last October, Ryder purchased Midwest Warehouse & Distribution System and its 17 warehouses, nine of which are multi-customer. He then continued his series of purchases in December when he bought Whiplash for $ 480 million, a transaction that the company said would allow it to reach 100% US in two days.
However, Ryder’s business may change. FreightWaves reported Last week, the vehicle supplier was the subject of an “undesirable” takeover bid from private investment company HG Vora Capital Management.
According to a 13D document last Friday, HG Vora said it has a 9.9% stake in Ryder. He offered to buy the rest of the company for $ 86 a share. As of Tuesday, Ryder shares are about $ 85 a share after rising on news last Friday.
Analysts say a possible rationale for the takeover is that Ryder is generally worth less than the sum of its parts. They also point to the emergence of XPO, a spin-off of GXO Logistics (NYSE: GXO) as a potential headwind for the company.
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