Last-mile delivery, the final step in the delivery process, is a common challenge for businesses. According to one study, nearly 90% of retailers struggle with last-mile delivery operations due to technical issues, cost, or a combination of both.
Bill and Lisa Catania understand this all too well. The husband-and-wife team founded OneRail, a last-mile delivery solutions business, in 2018.
Bill previously founded digital coupon company M-Dot Network, which was acquired by retail transaction processing organization Inmar in 2011. An avid stock racing fan, Bill also previously managed a web property that syndicated horse racing news and results to media partners.
So what led Bill to found OneRail? Comparatively speaking, it was the frustration of having a refrigerator delivered to your home from a big box store. Bill started OneRail with his partner Lisa to “remove friction in fulfillment,” he says.
“We originally called it OneRail Zapt and focused on providing delivery capabilities to local businesses through our courier network,” Bill told TechCrunch. “But we quickly realized that we couldn't scale to fully solve the omnichannel distribution problems of large retailers and wholesalers, so we went back to the drawing board and built the foundation and solution. That’s what OneRail is today.”
OneRail's platform automatically selects delivery mode (same-day, next-day, etc.) and carrier network to optimize orders based on factors such as order data and past performance. It is connected to a network of drivers and logistics companies, as well as a customer support team that tries to resolve issues as they arise.
“Shipping is complex and comes in a variety of sizes and weights, making it difficult for one network to support all shipping needs,” Bill said. “However, working with different delivery companies to fulfill different orders is expensive to build and creates a fragmented experience for both operational staff and consumers. They struggle with reporting and delivering the retail-centric customer experience they desire.”
OneRail's platform selects shipping and logistics options depending on the order requirements. Image credit: OneRail
OneRail also offers services for fleet managers. Administrators can use the app to dispatch and contact drivers, track deliveries, and handle other billing and operational tasks.
“Many of our customers have retired various 'point solutions' that were implemented during the peak of COVID-19, including visibility platforms, parcel delivery platforms, driver tracking apps, etc.,” Bill said. “OneRail provides unified data and a single pane of glass for last-mile fulfillment at a lower cost.”
There are a number of companies entering the last-mile logistics space, including Fez Delivery, UniUni, Curri, Onfleet, and 99 Minutos. That's not surprising given the huge opportunity. According to Future Market Insights, the market size for last-mile delivery software is expected to grow from $14.19 billion to $47.73 billion by 2034.
But OneRail has expanded rapidly to keep rivals at bay. The company's revenue has increased 254% since November 2022 and it has hired a number of executives, including Chief Financial Officer Ed Kurth.
OneRail claims its service currently reaches more than 400 cities in the U.S. and Canada and processes more than 250,000 deliveries per day for approximately 50 brands.
OneRail also recently acquired Orderbot. The Vancouver-based company, which OneRail acquired in June, sells inventory management tools designed to reduce out-of-stocks, split orders and delivery delays.
“Lisa and I founded OneRail on the premise that there was no last-mile platform that offered solutions to both upstream and downstream fulfillment problems plaguing retailers and wholesalers,” said Bill. says. “Our competitors are only solving a small part of the operational puzzle by focusing on individual last-mile delivery capabilities.”
Orlando-based OneRail, whose customers include Lowe's (which offers same-day delivery) and PepsiCo, announced earlier this month that it had raised $42 million in a Series C funding round led by Aliment Capital. The company's total funding is approximately $109 million, and the new cash will be used for product development and expanding OneRail's 162-person team.
“This round is 100% equity and an up-round with a pre-money valuation of 120% higher than our Series B round two years ago,” Bill said. “In addition to raising equity, we have a $13 million debt facility with Silicon Valley Bank, which has been our partner since our Series A in 2021. We have several months of free cash flow. We expect to achieve profitability in 2020 and 2025.