LaserShip, a package-delivery company with service across the East Coast and South, is acquiring OnTrac Logistics, a West Coast delivery company, for $1.3 billion, according to a Moody’s note.
Combined, the companies will be the country’s largest regional parcel carrier, stretching from the Atlantic to Arkansas and from the Pacific to Colorado. Neither company immediately responded to Insider’s request for comment.
“Now, it’s really just the middle 10 states that won’t be covered by these two networks,” said Matthew Hertz, a cofounder of the e-commerce-operations consultancy Second Marathon and former operations specialist at Birchbox and Rent the Runway. Apart from Texas, those missing states represent a small percentage of the US population, he said.
Regional carriers like LaserShip and OnTrac have gained ground during the pandemic as the rush of e-commerce packages has led FedEx and UPS to raise prices, levy surcharges, and restrict how many packages some retailers can ship. LaserShip has used the boom to grow territory and increase automation in its warehouses.