XPO takes steps to expand European last mile delivery services

Global freight transportation and logistics services provide XPO Logistics said today it has expanded its market-leading last mile logistics services of heavy goods into Europe.

The European markets XPO will expand into include UK, Ireland, the Netherlands, Spain and France, and XPO said it expects to manage more than 750,000 last mile deliveries from retailers and e-commerce companies in Europe in 2018.

“Our last mile expansion to Europe is being driven by customer demand, primarily related to e-commerce,” said Troy Cooper, chief operating officer of XPO  Logistics, in a statement. “Consumers are buying more large items online, including furniture and appliances. These are home deliveries that often require white glove services, such as assembly, installation and testing. We’ll leverage our proprietary technology and successful business model that have made us a last mile leader in North America.”

XPO added that the timing for this expansion works well, as the last mile logistics market in Europe is fragmented and comprised of small-scale regional players.

In a recent interview, XPO Chairman and CEO Brad Jacobs told LM that XPO’s last mile business continues to see significant growth with the company’s fourth quarter 2017 earnings from that segment growing 21.3% annually, with that growth stemming from customer demand.

“That was the fastest-growing quarter we had for last mile for all of 2017, and it was powered by our e-commerce network and a strong peak season, especially from our e-commerce customers,” he said. “Last mile is buoyant, and we are right at the forefront of that.”

What’s more XPO opened eight new last mile facilities over the last three months of 2017. And Jacobs said XPO plans to open up 30 new last mile hubs in North America by the end of 2018, which will bring its United States total to 85.

In  May 2017 interview, Charlie Hitt, president of XPO’s last mile business unit, said that XPO needs to invest in what its customers are having happen in the growth of their business, particularly in e-commerce.”

The impact of a rapidly growing e-commerce market on the last mile sector, especially for heavy goods, is something that cannot be overstated, added Hitt.