If every major transformation in logistics brings new market leaders, then XPO Logistics' spin-off of its truck brokerage and asset-light transportation business into RXO marks a significant industry event. The newly independent company's ability to establish itself in this competitive sector—and its potential to reshape market dynamics—warrants close observation.
RXO Begins Trading as Standalone Entity
On June 1, RXO commenced trading on the New York Stock Exchange, completing its separation from XPO Logistics. As America's fourth-largest full-truckload brokerage, RXO employs approximately 7,400 people and operates a technology-driven platform connecting shippers across multiple industries with about 100,000 independent carriers representing over 1.5 million trucks. The company is headquartered in Charlotte, North Carolina.
"Today marks a milestone for our business," said RXO CEO Drew Wilkerson. "With RXO's launch, we've created an independent, technology-driven pure play positioned to thrive in any market environment. RXO has the capability to unlock value for all stakeholders."
XPO had previously positioned the spin-off as representing North America's leading technology-enabled truck brokerage platform, citing its industry-leading revenue and profit growth history, efficient freight marketplace, and extensive full-truckload capacity. The business also includes asset-light services like last-mile logistics, managed transportation, and global freight forwarding.
CEO Outlines Growth Strategy in Exclusive Interview
In an interview, Wilkerson detailed RXO's market approach, strategic priorities, and operational outlook:
On immediate priorities: "We now have a management team entirely focused on RXO. Our decade of experience has taught us the necessity of maintaining agility to adapt to market shifts. We've successfully executed tailored strategies for different market conditions over the past eight years."
Wilkerson noted that while the truck brokerage industry grew at a 9% compound annual rate from 2013-2021, RXO achieved 27% growth—triple the industry average. "Our path forward remains organic growth through market share expansion and profitable scaling, supported by strong client relationships and industry-leading technology."
On competitive advantages: "The RXO Connect platform (formerly XPO Connect) provides access to over 100,000 carriers and 1.5 million trucks. Last quarter alone, we added 10,000 carriers to our network. The platform's stickiness comes from simplifying workflows and increasing earnings for carriers—75% return within a week for their next load."
On market conditions: "We've seen spot rates decline while contract rates stabilize. With 73% of our business under contract, we've maintained pricing while reducing transportation procurement costs. Recent data suggests spot rates may be bottoming, though we're not calling the market floor. For 2023, we anticipate contract rates declining 5-10%."
On peak season outlook: "This year's peak will be more subdued compared to the unprecedented demand of 2020-2021. Interestingly, despite retail softness, all other verticals show year-over-year volume growth. We expect Q4 volume increases even after two record years."
On macroeconomic factors: "Regardless of market direction, we're positioned to outperform. Our technology enables industry-leading margins—19% in Q3 and 21% in Q2. In softening markets, transportation costs decline faster than customer rates. In tightening markets, we maintain contract volumes while gaining higher-margin spot business as asset carriers prioritize profitability."
On capital allocation: "Our capital expenditures remain below 1% of revenue, primarily directed toward high-ROIC technology projects. We maintain broker staffing levels allowing 15-20% overnight volume growth, though we've moderated hiring with the market slowdown."
On M&A strategy: "While we monitor the competitive landscape, organic growth remains our priority—nearly 100% of our growth the past three years came organically. We'd consider niche verticals or managed transportation opportunities only if they create clear shareholder value."
On technology investments: "Our data moat strengthens with each transaction. Having complete historical data on every shipment allows continuous algorithm refinement. We're investing across the platform to sustain growth and market share gains."
On client priorities: "Customers fundamentally seek faster, cost-effective delivery. Our technology optimizes routing, scheduling, and consolidation—whether suggesting shipment days or creating continuous move opportunities. Service quality—on-time pickup and delivery—remains paramount, and we've built solutions that mimic asset-carrier capabilities while leveraging our unlimited capacity network."