XPO Logistics, the busiest provider of what is referred to as ‘last mile’ deliveries to North America homes, recently announced that it expects to participate in 750,000 home deliveries in 2018 in its recent European expansion as it continues to grow its network of delivery contractors.
The company originally tested the service in the Netherlands, the UK, and Ireland, later expanding to France and Spain. It currently counts the giant Swedish furniture retailer Ikea as one of its customers.
XPO Logistics is based in Greenwich CT, and handles around 13 million deliveries of larger items such as furniture in the US yearly.
Analysts described the expected European volume as a nice start. XPO has grown from sales of $175 million in 2012 to its current level of around $15.4 billion, primarily through acquisitions. The potential for the European market is said to be in the ‘multi-multi billion dollar range’.
Online sales have fueled the market for delivery of bulky items directly to homes, and Europe is seen as a prime opportunity for expansion, particularly for items that require installation, due to the current market fragmentation.