XPO Logistics stock shot up in the wake of reports last week that Home Depot was considering an acquisition bid for the U.S.-based logistics and transport company. With XPO already a major logistics partner for Amazon.com’s push into online furniture sales and delivery, a Home Depot acquisition could have wide ranging e-commerce implications, including keeping the valuable logistics company out of Amazon.com’s hands.
It’s important to note that neither Home Depot nor Amazon.com have publicly stated their intentions, or detailed any discussions with the logistics company, but as major e-commerce companies seek to control more of their last-mile operations, companies like XPO become attractive targets. Meanwhile, Home Depot has made a major push into the home-appliance market in recent years, a move that helped boost the company’s third-quarter sales by 6.6 percent, year-over-year.
XPO bills itself as, “the largest provider of last-mile logistics for heavy goods in North America.” The company offers a wide range of logistics and freight transportation services, including home delivery of items such as furniture and appliances.
Riding a wave of increased e-commerce volumes, XPO has positioned itself ahead of market trends, a fact not lost on major retailers.
Earlier this month, XPO reported 24 percent increase in e-fulfillment volume at its U.S. contract logistics facilities during the four-day holiday shopping period between Black Friday and Cyber Monday. In response, the company hired approximately 6,000 seasonal workers, “due primarily to the growth in e-commerce.”
XPO also recently launched an end-to-end service program for e-commerce and omnichannel retailers, which moves goods through their supply chains using XPO’s last-mile, less-than-truckload and logistics networks in an integrated fashion.