US-based last-mile specialists OnTrac has secured an agreement with over 85% of its first and second lien term loan holders.
The deal involves new debt financing, extended repayment deadlines, and added liquidity. All OnTrac lenders can participate in the transaction.
OnTrac’s nationwide reach
The company operates 16 highly automated sort centers and nearly 100 branches across the US. It provides same-day delivery and 7-day delivery services and offers transcontinental shipping for coast-to-coast coverage.
The last-mile delivery specialists span 35 states and Washington, D.C., covering around 70% of the U.S. population. This extensive reach supports retailers in addressing the increasing demand for consumer e-commerce deliveries.
Customer experience: Investing in technology and automation
Earlier this year, OnTrac announced it was expanding into the Midwest. The network expansion reaches Madison and Milwaukee, Wisconsin, and Minneapolis and St. Paul, Minnesota, and St. Louis, Missouri.
With this, retailers will be able to reach 17 million additional customers.
OnTrac CEO Mike Duffy. “We will continue identifying new opportunities for growth, expanding our geographic reach, investing in technology and automation to improve the customer experience, and completing the transition from a super-regional to a national carrier.”
Looking ahead: Holiday shopping insights
In mid-November, the National Retail Federation (NRF) in the US revealed the average consumer plans to spend a record $902 on gifts, food, decorations, and other holiday essentials.
When it comes to the UK and North America, Locate2u reported on a survey by Celigo of 4,000 consumers in the UK and North America found that the desire for faster service is a key factor driving shoppers to make online purchases.
In Australia, research by Pureprofile Limited (ASX: PPL) reveals that consumers are planning to spend 20% more on gifts this year, averaging an additional $80 compared to previous years.
Global e-commerce market
Grand View Research reports the global e-commerce market is set for good growth in the next six years.
“Due to time constraints, a need for a smooth shopping process, and the ease of online buying, consumers increasingly select the digital marketplace,” reads the report.
The report adds that with the increasing use of smartphones and tablets, mobile technology is especially important in allowing customers to buy seamlessly from any location.
NOW READ: Amazon secures a third of all global online orders made before Christmas
Photo Credit: OnTrac
About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
