RXO

"We transformed the traditional brokerage business model by capitalizing on the intersection of two big, advantageous trends: the shift toward using truck brokers as middlemen, and the efficiencies of automated services in an industry where that was not yet the norm. If I was to sum up the genesis of XPO, GXO, and RXO, it would be the vision I shared with Mario in my living room in 2011: Automate everything you can. The importance of that, within the context of this chapter, is that we got the big trend right in our industry a dozen years ago, when it was far less apparent than it is today."

"XPO’s tech team created a fully automated, digitally enabled transportation network that spans a nationwide, virtual freight marketplace with a single repository of information, facilitating transactions in a private cloud. Huge amounts of data flow into the platform in real time, giving the sales and carrier procurement teams the exact same visibility into loads and trucks moving around the network. This high-profile platform is in use today as RXO Connect® in North America and XPO Connect® in Europe. Ten years ago, zero percent of XPO’s truck brokerage loads were created or covered digitally. Today, 96 percent of loads tendered by RXO—the brokerage business we spun off in 2022—have a digital component, and many of them are touchless transactions through direct digital connections with customer systems."

"More recently, I divided XPO into three separate, publicly traded companies as a value-creation strategy. Between 2021 and 2022, we completed the spin-offs of GXO, the largest pure-play contract logistics provider in the world, and RXO, a leading freight brokerage platform that runs on technology we developed in-house. As a result, XPO is now primarily a less-than-truckload (LTL) transportation provider—a road-freight service that combines shipments from multiple customers on the same truck to move them efficiently through a high-speed network. I currently chair all three companies, and each business is helmed by a strong CEO."