General Motors launches BrightDrop to electrify deliveries
In an announcement made by General Motors (GM), the company reported the launch of its new business - BrightDrop.
The new business offers an ecosystem of electric first-to-last-mile products, software and services to empower delivery and logistics companies to be more efficient.
Born out of GM’s Global Innovation organisation, BrightDrop joins the automotive manufacturer’s lineup of recently launched startups including OnStar Insurance, OnStar Guardian and GM Defense. The company reports from a strategy standpoint GM reports that the business will unlock B2B areas, the capability to expand the Ultium platform, as well as software and service opportunities.
“BrightDrop offers a smarter way to deliver goods and services. We are building on our significant expertise in electrification, mobility applications, telematics and fleet management, with a new one-stop-shop solution for commercial customers to move goods in a better, more sustainable way,” commented Mary Barra GM Chairman and CEO.
GM estimates that by 2025, “the combined market opportunities for parcel, food delivery and reverse logistics in the U.S. will be over US$850bn.” In addition the reports that demand for urban last-mile delivery, fueled by e-commerce, is expected to grow by 78% by 2030, leading to a 36% increase in delivery vehicles in the top 100 cities.
To help meet the surge in demand as well as reduce the impact on the planet, BrightDrop is working to develop an integrated set of solutions to improve first-to-last-mile delivery.
XPO Logistics Completes Spin Off of GXO Logistics
XPO Logistics has completed its spin-off of GXO Logistics, creating two independent public companies.
GXO Logistics today marked the occasion by ringing the opening bell on the New York Stock Exchange. GXO leadership and board members were in Manhattan to mark the “exciting milestone in GXO’s history”, opening Wall Street and celebrating the business’s first day of regular way trading.
“We consider it a privilege to launch GXO as a new company at the top of the industry — the world’s largest pure-play logistics provider,” said chief executive Malcolm Wilson, in a statement. “We have a powerful platform for future growth, including our culture of innovation, strong customer relationships, seasoned leaders and a world-class team. This is day one of unlocking vast new potential for our company.”
GXO Logistics in Brief
- CEO: Malcolm Wilson (formerly CEO, XPO Logistics Europe)
- Employees: 94,000 approx.
- Warehouse capacity: 208m sq.ft
- Key customers: Apple, Nike, Whirlpool, Nestlé
XPO’s Pure-Play Strategy
XPO Logistics announced plans to spin off its logistics division in December 2020, with the intention of creating two pure-play entities focussed on contract logistics (GXO) and freight transportation (XPO).
In an interview last month, GXO Chief Investment Officer Mark Manduca said there is “massive scope” for growth both organically and through M&A activity. "A deep pool of potential new business exists for GXO, both through share gain and penetration,” he added, explaining that companies are increasingly looking to outsource logistics as supply chains become ever complicated.
GXO is a leader in logistics automation and robotics, leveraging AI and machine learning to ‘turn logistics into a competitive advantage’ for its customers. It has approximately 94,000 employees, and counts Apple, Nike and Whirlpool among its blue chip customers. The company says it will also look to strengthen its presence in other high-growth areas, primarily ecommerce, apparel, technology, food and beverage, and consumer electronics. The company has 208m+ sq.ft of warehouse space across 869 locations in 27 countries.