XPO opens up new Toronto-based last mile facility

XPO Logistics, a Greenwich, Conn.-based global provider of freight transportation and logistics services, said this week it is opening up its first Canada-based hub for last mile distribution.

XPO, the largest provider of last mile logistics for heavy goods in North America, said this new 50,000 square-foot facility is based in Toronto, Ontario. And it added that this facility, which will be comprised of roughly 70 staffers, will serve customers throughout Ontario.

“We’re delighted to extend our last mile capabilities in Canada with the opening of our Toronto hub,” said Troy Cooper, president of XPO Logistics, in a statement. “Demand for our service is on the rise, as more people buy heavy goods online and retailers outsource deliveries. Consumers in Canada already have access to a first-rate in-home experience from XPO with our experienced team and technology – now we’re accelerating delivery to homes in the country’s largest metropolitan area.”

The Toronto hub has been part of XPO’s plan since the company announced its last mile network expansion in 2017.  XPO’s business model uses a contracted network of service providers in North America, including carriers with their own trucks, service technicians and, in some cases, cross-dock capacity. In contrast, XPO said its hubs are XPO-owned and are an extension of the large network it already has in place.

“Consumers are buying more heavy goods online, and many of those products require preparation ahead of delivery and installation,” XPO said. “The hubs serve as a dedicated staging area for unboxing, assembly, inspection and other pre-delivery services.”

When last mile items are in transit, XPO explained its technology provides consumers with various self-service options like web tools and voice-activated technology via Google and Amazon intelligent assistants. And it also pointed out that consumers have the ability to track orders and receive automated appointment verifications over phone, e-mail, or text.

In an interview with LM last week, XPO Chairman and CEO Brad Jacobs said that XPO’s Last Mile division had revenue growth of 17% in the second quarter, with e-commerce again serving as a big driver for the gains. In the second quarter, XPO opened an additional 16 last mile hubs, bringing the total amount in the network to 71. XPO remains on track to hit its goal of 85 North American hubs ahead of the holiday season.

“This will position us within a 125 miles of 90% of U.S. consumers,” said Jacobs. “Our last mile customers are fired up about this capability.”

What’s more, XPO said it is on track to facilitate around 14 million last mile deliveries in North America in 2018, adding that the new Toronto facility is part of the 85 last mile hubs in North America it plans to open up.