In the rapidly growing e-commerce market, consumers are demanding faster shipping times, but are not willing to pay higher costs. This is putting logistics companies in a challenging position to keep their customers happy. Providers, including XPO Logistics Inc. (NYSE: XPO), are spending more on technology so they can keep up with the competitive logistics sector, and are looking for acquisitions to help.
When C.H. Robinson Worldwide Inc. (Nasdaq: CHRW) agreed to buy Freightquote.com for $365 million in 2014, CEO John Wiehoff acknowledged that e-commerce was going to play a big role in the future of logistics. Freightquote.com is an Internet-based freight brokerage company that allows customers to compare rates, book shipments and make payments online. The company works with major carriers such as FedEx Corp. (NYSE: FDX) and Roadrunner Transportation Systems Inc. (NYSE: RRTS).