– UPS has decided to sell its freight management/logistics brokerage business to RXO Logistics for $1 billion.
– This sale highlights the intense competition in the logistics industry, particularly in the e-commerce sector.
– RXO aims to leverage the furniture delivery solutions of this business to streamline the transportation, assembly, and setup of furniture across the country.
– This acquisition will also facilitate RXO’s plans to expand its suite of services, including time-definite deliveries and inventory management.
– UPS aims toget increased focus on its core packages delivery business through this sale.
– The transaction, subject to regulatory approvals, is expected to close in the second half of 2022.

UPS Deals Its Logistics Arm to RXO for $1 Billion Hefty Price

Against The Grain: Streamlining Furniture Delivery Throughout The Nation

With RXO’s acquisition of UPS’ logistical brokerage wing, they plan to polish their furniture delivery services, ensuring seamless transportation, assembly, and installation of furniture across the US. This move significantly escalates the competition within the logistics sector, particularly in the e-commerce field that is witnessing economic boom.

Expanding Suite of Services & Focusing on Core

With a view that sits far into the future, RXO seeks to supplement its service range with time-definite deliveries and superior inventory management, capitalizing on the acquisition. On the other side, UPS hopes to zoom in further on its core packages delivery business, thus leading to their willingness to shake hands on the billion-dollar transaction.

At the brink of regulatory approval, both parties expect to seal the deal in the latter half of 2022.

This billion-dollar deal between UPS and RXO Logistics puts a spotlight on the fierce competition pulsing through the logistics industry, particularly the e-commerce sector. What’s more intriguing though is how this transaction is likely to streamline the furniture delivery process across the nation. Get ready, America! RXO is about to deliver suitability and convenience right to your doorstep. And as for UPS, the sale will allow them to return their full attention to their primary game – package deliveries. 2022 sure is shaping up to be an exciting year for logistic industry!

originial article https://www.furnituretoday.com/?p=318220

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