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].

Core Insights - OnTrac is launching a hybrid air-and-ground Express delivery product in early 2026 in collaboration with ClearJet, aiming to provide a cost-effective solution by skipping domestic ground shipping zones, thus offering consistent two-day and three-day coast-to-coast transit times [3][8][9] Company Overview - ClearJet operates a parcel delivery service that integrates regional ground transport with narrowbody passenger aircraft, managing on-airport sortation and final delivery through regional partners or its own vehicles [2] - OnTrac serves 35 states and the District of Columbia, focusing on last-mile delivery from retail fulfillment centers located near customers [6][10] Service Offerings - OnTrac Express will reach over three-quarters of U.S. shoppers and 48 of the top 50 metro areas, offering competitive pricing and fewer surcharges compared to traditional air express services [9][16] - The new deferred delivery product, OnTrac Ground Essentials, will provide transit times one to two days longer than legacy services at rates up to 30% lower than national providers [13][14] - The 7-Day Play service will utilize artificial intelligence to predict delivery times, enhancing the current seven-day service and improving order conversion rates for retailers [18][21] Market Positioning - OnTrac aims to fill the gap for retailers needing faster delivery options without the high costs associated with legacy air services, thus appealing to a broader range of e-commerce merchants [8][16] - The company is responding to a market trend where many retailers have not fully regionalized their fulfillment networks, often relying on one or two centers [8][21] Competitive Landscape - Experts have mixed reactions to OnTrac's strategy, with some supporting its expansion to compete with FedEx and UPS, while others suggest it should focus on its strengths in last-mile delivery [6][10] - The traditional carriers, FedEx and UPS, have raised prices and added surcharges, prompting shippers to seek alternative carriers like OnTrac [14][17]

Core Insights - OnTrac is launching new express delivery and ground shipping services to address gaps in the delivery market, particularly for long-distance shipments in the U.S. [3][7] - The express service, OnTrac Express, will utilize ClearJet's air transportation capabilities to offer two-day and three-day transit times [7] - OnTrac Ground Essentials aims to provide a cost-effective shipping option with per-parcel costs up to 30% lower than national providers [5][7] Service Details - OnTrac Express will manage package pickups for longer distances and use air cargo carriers for transportation to OnTrac facilities for last-mile delivery [3][4] - The Ground Essentials service features longer transit times but eliminates residential delivery surcharges, with a current fee of $6.10 per package [5] - A "7-Day Play" program has been introduced to provide precise delivery dates at checkout, enhancing customer experience for time-sensitive shipments [6] Market Positioning - The partnership with ClearJet indicates a strategic move to create a new model between expensive air services and traditional ground shipping [4] - Early access enrollment for both new services is available, with some customers already piloting the capabilities to provide feedback before the full rollout [7]