OnTrac Scales Delivery Services with Express, Deferred Ground Shipping
Yahoo Finance·2025-09-10 20:41

Core Insights - OnTrac is significantly expanding its delivery services beyond last-mile logistics by introducing three new coast-to-coast services: OnTrac Express, OnTrac Ground Essentials, and 7-Day Play [1][6]. Service Details - OnTrac Express is a hybrid air-and-ground service that offers two- and three-day delivery, developed in partnership with ClearJet [2]. - OnTrac Ground Essentials is a deferred service aimed at brands and third-party logistics providers (3PLs) for shipping non-urgent parcels at scale, with transit times typically one or two days longer than standard ground service [4]. - The 7-Day Play service combines seven-day ground delivery with predictive delivery promises through Fenix Commerce's software, enhancing customer experience with precise delivery dates [7]. Cost Efficiency - OnTrac's services are positioned as cost-effective, with per-parcel costs up to 30% lower than those of national providers, and they do not include the typical residential delivery surcharge of $6.10 [5]. - The introduction of these services comes as larger competitors like UPS, FedEx, and DHL are increasing residential fees ahead of the holiday season, indicating a strategic market entry [5]. Market Demand - A significant portion of retailers (51%) have not fully regionalized their fulfillment networks, often relying on one or two fulfillment centers, which OnTrac aims to address with its new services [3]. - The company emphasizes the need for an economy service that balances cost and coverage, providing merchants with a distinct economy tier that aligns scale with savings [6]. Launch Timeline - Both OnTrac Express and OnTrac Ground Essentials are set to launch formally in early 2026, with early access program enrollment currently open [6].