LaserShip Van
Source: LaserShip

LaserShip and OnTrac Merge to Build National Parcel Carrier Network


LaserShip and OnTrac Logistics are two regional logistics last-mile delivery companies that announced they agreed to a merger with a goal of building a new nationwide parcel delivery service to rival larger competitors such as UPS, FedEx, and the US Postal Service.

The combined company will bring together two complementary operating footprints across the United States as LaserShip operates primarily in the eastern United States, while OnTrac Logistics operates mostly in the western United States.

“This merger of two strong companies is a testament to the extraordinary efforts of our team members to build a leading parcel carrier and logistics business. With OnTrac, we will use our combined best practices and scale to support customer growth and provide excellent opportunities for our associates.”

Mike Roth, Board member and interim CEO of LaserShip

With the expectation of high shipping volumes over the holiday season, LaserShip and OnTrac will not link their networks until 2022 and will continue to operate independently until then.

LaserShip and OnTrac Merged Company Could Become Viable Alternative to UPS and FedEx

With these two companies merging, they are poised to build the foundation of a national network. But as this combined service map shows, there are some significant holes that will need to be filled.

Still, this is a significant merger as it combines the strengths of two of the largest regional last-mile ground delivery carriers into one.

It also becomes the natural evolution of regional carriers looking for new opportunities to grow their business after many of them had banked on Amazon for years, but lost delivery contracts as Amazon grew its own delivery network.

This will not become a significant competitor to UPS and FedEx in one year, but with innovation and capital investment, there is a good chance more online merchants will look at this merged company as a viable option for last-mile residential deliveries.

“As our customers grow, so do their shipping needs. By joining with LaserShip, we will be well positioned to continue innovating and providing leading service for shippers, and faster delivery for consumers. It’s the next chapter in our steadfast commitment to the ‘On-Time for Less’ promise we make to our shippers with every package, every day.”

Robert E. Humphrey, Jr., Chairman and CEO of OnTrac

LaserShip is a portfolio company of American Securities and Greenbriar, and both will provide additional equity financing and continued strategic support for the combined company.

The transaction is expected to close in Q4, subject to customary closing conditions.

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One Comment

  1. This is going to be the biggest morass since Roadway Services spun off Roadway Express in the mid 1990’s, rebranded themselves as Caliber Systems, tried to put all of the Roadway regional group, i.e., Viking, Central, Spartan & Coles together as a national carrier. It didn’t work, Spartan & Coles were shut down, Central was sold back to its’ original owners, and Viking, an established West Coast carrier for years was the only company to survive.

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