- Ryder will acquire e-commerce and omnichannel fulfillment provider Whiplash for $480 million, the companies announced Monday. Ryder aims to complete the transaction by early January, which will bolster its warehouse footprint in key port and gateway markets.
- The deal brings 19 new distribution centers totaling nearly 7 million square feet under Ryder's purview. It will also speed up Ryder's transit times: the company expects to deliver to 100% of the U.S. within two days and 60% within one day following the acquisition.
- More brands are looking for the "dynamic fulfillment services" that Whiplash provides as omnichannel retailing grows in popularity, Steve Sensing, Ryder president of global supply chain solutions, said in a statement.
Ryder is growing its distribution center footprint throughout the U.S. at a fast pace via acquisition. The news of its Whiplash deal comes after the company announced in October it would buy Midwest Warehouse & Distribution System, which operates 17 warehouses and has a strong presence in the Chicago area.
With the Whiplash deal, Ryder will gain new facilities in markets near major ports in Long Beach, Savannah, New York/New Jersey and Seattle/Tacoma. It's a critical time to have a port-adjacent warehouse presence, as import activity on both coasts has grown amid the pandemic and warehouse availability is limited in markets like California's Inland Empire.
"Whiplash's best-in-class e-commerce platform and key geographic strongholds—coupled with Ryder's industry-leading transportation logistics solutions, including our robust Ryder Last Mile delivery network for big-and-bulky goods—positions us to deliver incredible value for our customers who are looking for more advanced e-fulfillment solutions in today's ever-changing landscape," Robert Sanchez, Ryder chairman and CEO, said in a statement.
Ryder operates more than 300 warehouses covering 64 million square feet. Whiplash and Midwest will each give Ryder about 7 million additional square feet of warehouse space, which includes a mix of dedicated and multi-client spaces.
"Multi-client warehouse environments are a great entry point for new customers looking for a 3PL that can meet their needs now and in the future," said Darin Cooprider, Ryder senior vice president of CPG, in a statement accompanying the Midwest acquisition announcement. "As our customers' businesses grow and evolve, we can seamlessly transition them from multi-client warehouses to dedicated facilities."
Tech-forward 3PLs like Whiplash, ShipBob and Deliverr have been able to capture the business of small e-commerce startups, a market Ryder wants to tap into, Shipium CEO Jason Murray said in an email. Whiplash serves more than 250 brands through its e-commerce and omnichannel fulfillment services.
"Envision the shoe or chocolate startup doing less than $10 million per year in sales," Murray said. "Companies like Ryder, Rakuten, XPO, and others will be trying to buy their way into that market more and more and hope that those customers grow with them."
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