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Why is XPO Spinning Off RXO with Drew Wilkerson

Release Date: 08/15/2022

Triple Bottom Line Logistics with Tom Raftery

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Drew Wilkerson and Joe Lynch discuss why XPO spinning off RXO. Drew is President of North American Transportation, XPO and CEO-elect of RXO.

About Drew Wilkerson

Drew Wilkerson is the President, North American Transportation, XPO and CEO-elect of RXO. Drew is a transportation industry veteran with 14 years of senior experience in brokerage operations. He has leadership and P&L responsibility for XPO's asset-light North American truck brokerage business and complementary brokered services of managed transportation, last mile logistics and global freight forwarding. Mr. Wilkerson joined XPO in 2012 to spearhead the growth of the company’s flagship truck brokerage hub in Charlotte, North Carolina. He was subsequently promoted to regional vice president and then president of XPO’s North American brokerage business, and in 2020, he was named president of North American Transportation. Prior to XPO, he held leadership positions in sales, operations, and customer and carrier relationship management with C.H. Robinson Worldwide. Mr. Wilkerson will become chief executive officer of XPO's planned spin-off of its tech-enabled brokered transportation platform when the new public company is created later this year.

RXO Profile

RXO will be a leading platform for tech-enabled truck brokerage services in North America, with a long track record of industry-best revenue and margin growth, a highly efficient digital freight marketplace and access to vast truckload capacity, with complementary, asset-light offerings for last mile logistics, managed transportation and global forwarding. The corporate headquarters will be in Charlotte, North Carolina.

Key Takeaways: Why is XPO Spinning Off RXO

Drew Wilkerson is the President, North American Transportation, XPO and CEO-elect of RXO.
In the podcast interview, Drew and Joe discuss why XPO is spinning off RXO.
On July 12, 2022, XPO Logistics, Inc. (NYSE: XPO), a leading provider of freight transportation services, announced that a new company identity has been created in connection with the planned spin-off of its tech-enabled brokerage platform.
The spin-off is named RXO to reflect the company’s commitment to provide reliability multiplied by outperformance. RXO will go to market with the tagline “Massive capacity. Cutting-edge technology.”
Brad Jacobs, chairman and chief executive officer of XPO Logistics, said, “Our spin-off now has a name — RXO — bringing it one step closer to becoming a standalone industry leader. Our best-in-class truck brokerage business will be the keystone of RXO’s asset-light platform, poised to continue to take share of a growing market.”
After successfully spinning off GXO Logistics last year, XPO Logistics is on track to run the same playbook, splitting the truck brokerage business (RXO), from the core North American less-than-truckload (LTL) business.
Once the RXO spin-off is complete, both XPO and RXO will be streamlined pure plays in their respective sectors.
In addition to being more attractive stocks, Drew feels that the respective companies (XPO and RXO) will provide even better service to their customers.
Over the last 11 years, XPO has grown rapidly organically and through acquisition. With the spin-off of GXO in August, 2021 and the upcoming spin-off of RXO, the 3 companies become leaders in their respective spaces with an even greater focus on their customers.
XPO is a global leader in less-than-truckload transportation, and one of the largest LTL providers in North America.
GXO is the world’s largest pure-play contract logistics provider.
RXO will be a market leader in truck brokerage, with complementary brokered services for managed transportation, last mile logistics, and global forwarding.