The Challenge of Last-Mile Delivery
Last-mile delivery, the final step in the delivery process, is a common pain point for companies. According to one survey, nearly 90% of retailers struggle with their last-mile delivery operations, either due to technical issues, costs, or a combination of both.
The Founders’ Story: Bill and Lisa Catania
Bill and Lisa Catania understand this well. The husband-and-wife team founded OneRail, a last-mile delivery solutions business, in 2018. Bill previously founded a digital coupon company, M-Dot Network, which was acquired by retail transaction processing org Inmar in 2011. An avid stock racing fan, Bill also previously managed web properties that syndicated racing news and results to media partners.
So what led Bill to found OneRail? "Relatedly enough," he says, "the frustration of getting a refrigerator from a big box store to my house." With his partner, Lisa, Bill started OneRail to "remove the friction in fulfillment."
OneRail’s Solution
OneRail’s platform automatically selects shipping modes (e.g. same-day, next-day, and so on) and carrier networks to optimize orders based on factors like order data and historical performance. It’s connected to a network of drivers and logistics companies and a customer support team that tries to resolve issues as they crop up.
"Deliveries are complex — they range in size and weight, making it difficult for one network to support all shipping needs," Bill said. "However, working with various delivery companies to fulfill a range of orders is costly to build, and creates a fragmented experience for both operations staff and consumers."
The Benefits of OneRail’s Platform
OneRail’s platform selects shipping and logistics options depending on an order’s requirements.
Image Credits: OneRail
OneRail also provides services for fleet managers. Using its app, managers can dispatch and communicate with drivers, track deliveries, and handle miscellaneous tasks such as fuel management and vehicle maintenance.
The Impact of Last-Mile Delivery
Last-mile delivery is a critical component of the supply chain, and its efficiency has a direct impact on customer satisfaction and loyalty.
According to a report by McKinsey & Company, the last mile accounts for approximately 30% of total delivery costs. This highlights the need for efficient and cost-effective solutions that can streamline last-mile delivery operations.
OneRail’s Growth and Funding
OneRail has experienced significant growth since its inception in 2018. The company has raised over $100 million in funding, with a valuation of over $500 million.
In an exclusive interview with TechCrunch, Bill Catania revealed that OneRail is projecting profitability in 2025. "We’ve had several months of free cash flow," he said, "and we’re confident that our business model will continue to scale efficiently."
Conclusion
Last-mile delivery remains a significant challenge for retailers and logistics companies alike. However, with the emergence of innovative solutions like OneRail, there is hope for improvement.
OneRail’s platform has demonstrated its effectiveness in streamlining last-mile delivery operations, reducing costs, and improving customer satisfaction. As the company continues to grow and expand its services, it will be interesting to see how it addresses the complexities of last-mile delivery and sets a new standard for the industry.
Related Topics
- Aliment Capital
- Delivery
- Enterprise
- Exclusive
- Funding
- Fundraising
- Last-Mile Delivery
- OneRail
- Software
- Startups
- Transportation
About the Author
Kyle Wiggers is a senior reporter at TechCrunch with a special interest in artificial intelligence. His writing has appeared in VentureBeat and Digital Trends, as well as a range of gadget blogs including Android Police, Android Authority, Droid-Life, and XDA-Developers.
He lives in Brooklyn with his partner, a piano educator, and dabbles in piano himself occasionally — if mostly unsuccessfully.
