Imagine eagerly awaiting delivery of a large furniture item purchased online, only to face delays, damage, or installation issues during the crucial "last mile" of delivery. Such frustrating experiences can significantly dampen consumer enthusiasm for e-commerce. J.B. Hunt Transport Services is addressing this very challenge through strategic acquisitions.
The Arkansas-based transportation and intermodal giant recently announced that its subsidiary completed the asset acquisition of RDI Last Mile Co. on December 31, 2019, further expanding its footprint in final-mile delivery solutions.
This transaction continues J.B. Hunt's aggressive expansion in last-mile logistics. Earlier in 2019, the company acquired Cory's First Choice Home Delivery, following its 2017 purchase of Special Logistics Dedicated. The RDI acquisition solidifies J.B. Hunt's leadership position in this critical sector.
While the purchase price remains undisclosed, J.B. Hunt confirmed funding came from its existing revolving credit facility. Founded in 1987 and headquartered in South Easton, Massachusetts, RDI Last Mile specializes in bulky goods home delivery throughout the Northeast using a contract carrier model, generating approximately $35 million in annual revenue.
"Expanding our final-mile capabilities remains a strategic priority," stated John Roberts, President and CEO of J.B. Hunt. "The RDI acquisition will enhance our furniture delivery expertise."
Strategic Implications of the RDI Acquisition
This transaction holds multiple strategic advantages for J.B. Hunt:
- Geographic expansion: RDI's established Northeast network complements J.B. Hunt's existing coverage, enabling more comprehensive nationwide last-mile service.
- Enhanced capabilities: RDI's furniture delivery expertise strengthens J.B. Hunt's ability to handle large, fragile items, meeting growing demand for premium delivery services.
- Competitive positioning: Integrating RDI's resources and technology will bolster J.B. Hunt's market competitiveness in last-mile logistics.
J.B. Hunt's Last-Mile Strategy
The final delivery segment represents both the costliest and least efficient portion of the supply chain, yet critically impacts customer satisfaction. As e-commerce growth accelerates, consumer expectations for speed, reliability, and service quality continue rising. J.B. Hunt recognizes last-mile delivery as a key growth opportunity.
Operating under the Dedicated Contract Services division, J.B. Hunt's last-mile unit manages one of America's largest hybrid cross-dock networks, serving 100% of the continental United States. Through strategic acquisitions, the company is building a nationwide, efficient final-mile delivery infrastructure.
With RDI's inclusion, J.B. Hunt's last-mile division now operates over 104 facilities with 3.2 million square feet of warehouse space, significantly expanding capacity to meet growing market demands.
Challenges and Opportunities in Last-Mile Delivery
The final delivery segment presents significant obstacles:
- High costs: Multiple delivery attempts and specialized handling drive expenses.
- Operational inefficiencies: Traffic congestion and suboptimal routing impact productivity.
- Elevated expectations: Consumers demand faster, more precise deliveries with premium service.
However, substantial opportunities exist:
- Market growth: E-commerce expansion continues fueling last-mile demand.
- Technological innovation: Drones, autonomous vehicles, and AI routing promise efficiency gains.
- Service differentiation: Customized delivery solutions can create competitive advantages.
The RDI acquisition enhances J.B. Hunt's operational scale while strengthening its specialized capabilities in this crucial market segment. The company plans continued investment in last-mile solutions, exploring innovative technologies and service models to maintain industry leadership amid evolving customer expectations.
J.B. Hunt: An Industry Innovator
As one of North America's largest transportation logistics providers, J.B. Hunt Transport Services delivers comprehensive freight solutions across multiple sectors. Founded in 1961, the company combines technological innovation with customer-focused services to create value.
With established capabilities in intermodal, dedicated contract services, truckload, and last-mile delivery, J.B. Hunt continues expanding into new markets. The RDI acquisition demonstrates the company's strategic vision and commitment to logistics innovation, positioning it to deliver increasingly efficient, reliable, and high-quality transportation solutions.