GrubMarket Announces Acquisition of Oakport Transportation; Mike Xu and Sal Rizzo Discuss
SAN FRANCISCO, CA - As we here at AndNowUKnow have been reporting over the last few weeks, the supply chain is facing persistent challenges that have slowed the distribution of goods. Looking to overcome these hurdles, GrubMarket has taken a strategic approach by announcing its acquisition of Oakland, California-based Oakport Transportation, a provider of trucking and logistics services.
"Over the past few years, we've seen the stress on global logistics brought about by COVID-19. Moving perishable products around the country is complex and difficult and requires predictability and precision," explained Mike Xu, Chief Executive Officer of GrubMarket. "Oakport Transportation is a leader in providing high-quality transportation and logistics services. They are reliable and highly influential in the produce space, and we are excited for them to join the GrubMarket family. This acquisition enables GrubMarket to further strengthen our producer relationships on the West Coast, expand our internal fleets and warehouse capacity, and become a leader in transportation and logistics services for the underserved food producer and supplier market. Together, we will overcome the disruption plaguing the current supply chain and make a greater impact on the evolution and transformation of the American food supply chain industry."
Currently, Oakport Transportation stores and ships produce throughout California, the Pacific Northwest, British Columbia, and Nevada, as well as a few select routes throughout the rest of the country. According to a press release, GrubMarket will leverage the company's facilities and logistics networks to address supply chain challenges including trucking shortages, route congestion, and the booming consumer demand for fresh foods.
The timing of the acquisition is pivotal as the pandemic has created and exposed vulnerabilities in the supply chain system, impacting shipping routes, ports, warehouses, and trucking lines. Due to these issues, key transportation and logistics resources have spiked in cost, in some cases transferring to consumers. Oakport Transportation will provide GrubMarket with invaluable services such as load and LTL volume deliver, refrigerated storage for perishable goods, cross docking, and load consolidation to mitigate these price increases and challenges.
"We are excited to join the GrubMarket team and welcome the opportunities brought forth by GrubMarket's robust technology platform and network," said Sal Rizzo, Chief Executive Officer of Oakport Transportation. "We are constantly striving to be the most dependable trucking and logistics partner for our customers. We are thrilled to learn that GrubMarket shares this same goal. We sincerely look forward to joining the GrubMarket team and bringing more efficient, reliable, and cost-effective logistics services to GrubMarket's suppliers and end customers."
Following the completion of the acquisition, Oakport will continue to be managed by its current leadership team. Oakport's transportation and logistics offerings will then be integrated into GrubMarket's e-commerce and software product portfolio, which includes its proprietary WholesaleWare software suite, the company's software-as-a-service platform.
How will this strategic play enable GrubMarket to skirt some of the ongoing supply chain issues? Only time and AndNowUKnow will tell, so keep a tab open for us.