Ryder Acquires Dotcom Distribution

Dotcom Distribution logo feature

Ryder System Inc. has acquired niche third-party logistics provider Dotcom Distribution, its second such deal this year, boosting its position in health and beauty, cosmetics and fashion and adding the bench strength of a CEO who has been around since the early days of ecommerce.

Dotcom, headed by founder and owner Maria Haggerty, operates a 400,000-square-foot fulfillment center at its headquarters in Edison, NJ. All the company’s 100 employees will stay onboard, according to Ryder. Haggerty has been a regular editorial contributor to Multichannel Merchant.

“We chose Ryder for its nearly 90 years of logistics expertise, its sophisticated fulfillment, distribution, and transportation network, and commitment to staying at the forefront of innovation – all of which deliver the speed-to-market, scalability, and elevated brand experience that our customers expect,” said Haggerty in a release.

Jeff Wolpov, senior vice president of ecommerce for Ryder, said Dotcom Distribution was a good complementary fit in terms of its verticals as well as its strength in emerging and growth brands in those categories. Wolpov came to Ryder from Whiplash, where he was CEO, when it was acquired in January for $480 million. He was a co-founder of predecessor firm Port Logistics Group in 2008.

Wolpov said the much larger Whiplash would find itself competing for some of the same business with Dotcom Distribution.

“Maria’s expertise and emphasis on health and beauty is a natural addition to what we’re doing,” said Wolpov. “On some larger emerging brands that we recently won Dotcom was in the mix as well. Accounts that would outgrow them were a natural fit for us. Now no one can outgrow them. Some smaller opportunities we have fit nicely in what they do.”

Ryder Ecommerce by Whiplash has facilities totaling 10 million square feet in New York, New Jersey, Pennsylvania, California, Washington, Ohio, Georgia, Texas and Utah. Ryder says it can deliver to 100% of the U.S. within two days, and 60% of the U.S. within one day.

The Dotcom acquisition will help Ryder achieve what Wolpov called its aggressive growth goals as it expands its ecommerce fulfillment operations.

“Dotcom helps us get there little faster,” he said. “They have everything we like, a world-class facility and infrastructure, proven systems and a remarkable team. They want to be part of something bigger than what they can do on their own. They bring a proven leadership team with talent and industry knowledge, our cultures are aligned and we have the same customer-centric vision.”

Dotcom Distribution will retain its branding for the time being and operate standalone, with support from the parent company, Wolpov said.