Last-mile delivery, the crucial final phase in the shipping process, has emerged as a significant pain point for many companies across various sectors. A recent survey revealed that a staggering 90% of retailers face challenges in their last-mile delivery operations, grappling with issues related to technology, escalating costs, or a challenging combination of both.
Bill and Lisa Catania are acutely aware of these challenges, having firsthand experience in navigating the complexities of last-mile logistics. This dynamic husband-and-wife duo took a bold step in 2018 by founding OneRail, a company dedicated to innovating solutions for last-mile delivery.
What prompted Bill to establish OneRail? A relatable frustration: the arduous task of transporting a refrigerator from a large retail store to his home. This personal experience served as a catalyst, prompting Bill and his partner Lisa to launch OneRail with a mission to “remove the friction in fulfillment,” as Bill articulates.
In the beginning, OneRail was initially branded Zapt, primarily focused on providing local businesses with delivery capacity through an extensive courier network. However, Bill quickly recognized that this model lacked the scalability required to address the comprehensive omnichannel delivery challenges faced by large retailers and wholesalers. This realization led them back to the drawing board, where they meticulously built the robust foundation and innovative solutions that define OneRail today.
OneRail’s cutting-edge platform intelligently chooses optimal shipping modes—such as same-day and next-day delivery—alongside a variety of carrier networks, ensuring orders are fulfilled efficiently based on critical factors like order data and historical performance metrics. The platform is intricately connected to a wide network of drivers, logistics providers, and a dedicated customer support team that proactively addresses issues as they arise.
“Deliveries are complex and multifaceted — they vary significantly in size and weight, presenting a challenge for any single network to accommodate all shipping needs effectively,” Bill explained. “However, collaborating with various delivery firms to cover a diverse range of orders can be prohibitively expensive to develop, resulting in a fragmented experience for both operational staff and consumers. This fragmentation often leads to difficulties in tracking and obtaining visibility throughout the delivery journey, complicating the ability to generate insightful reports or deliver the retail-centric customer experience that clients desire.”
OneRail’s platform not only streamlines last-mile delivery but also extends essential services to fleet managers. Through its intuitive app, fleet managers can effortlessly dispatch and communicate with drivers, monitor delivery progress, and manage various billing and operations tasks with ease.
“Many of our clients have phased out various standalone ‘point solutions’ that were hastily adopted during the height of the COVID pandemic, including visibility platforms, parcel shipping tools, and driver tracking applications,” Bill commented. “OneRail steps in to offer unified data and a comprehensive view of last-mile fulfillment—all at a lower operational cost.”
With a multitude of entities vying for prominence in the last-mile logistics arena, including Fez Delivery, UniUni, Curri, Onfleet, and 99 Minutos, the competition is fierce. The tremendous potential in this sector is underscored by projections from Future Market Insights, which anticipates that the market for last-mile delivery software will surge from $14.19 billion to an astounding $47.73 billion by 2034.
In response to market demands and increased competition, OneRail has been on a rapid growth trajectory. Since November 2022, the company has achieved an impressive 254% revenue increase and has brought on several key executives, including chief financial officer Ed Carse, to fortify its leadership team.
Currently, OneRail’s services span over 400 cities across the United States and Canada, effectively managing more than 250,000 deliveries daily for approximately 50 unique brands.
July marked a significant milestone for OneRail as it acquired Orderbot, a Vancouver-based company known for its inventory management tools aimed at minimizing out-of-stock scenarios, splitting orders efficiently, and cutting down on late deliveries.
“Lisa and I founded OneRail on the belief that a comprehensive last-mile platform was lacking—one that addresses both upstream and downstream fulfillment challenges faced by retailers and wholesalers alike,” Bill emphasized. “Our competitors often tackle only isolated components of the operational puzzle, limiting their effectiveness in easing the complexities inherent in last-mile delivery.”
Headquartered in Orlando, OneRail serves notable clients including Lowe’s, facilitating same-day delivery services, and PepsiCo. Recently, the company revealed a successful Series C funding round, raising $42 million under the stewardship of Aliment Capital. This latest investment brings the total capital raised by OneRail to nearly $109 million, with plans to channel these funds into expanding product development initiatives and growing the current team of 162 employees.
“This funding round marks a significant achievement, reflecting a valuation that is 120% higher than our Series B round two years prior,” Bill stated. “Apart from the equity raised, we have secured a $13 million debt facility with Silicon Valley Bank, our partner since our Series A funding in 2021. Our recent months have yielded positive free cash flow results, and we’re optimistic about reaching profitability by 2025.”
What are the key factors that led to the success of OneRail in the last-mile logistics industry?
**Interview with Bill Catania, Co-Founder of OneRail**
**Interviewer:** Bill, thank you for joining us today. Last-mile delivery has become a significant challenge for many retailers. What prompted you and Lisa to start OneRail?
**Bill Catania:** Thanks for having me! The journey really started from a personal experience. I faced a lot of frustration trying to get a refrigerator delivered from a large retail store to my home. It was complex and cumbersome. That experience made us realize how much friction exists in the fulfillment process, and so we launched OneRail with a mission to streamline that.
**Interviewer:** OneRail initially started as Zapt focusing on local businesses. What changes did you identify that led to a rebranding and a new direction?
**Bill Catania:** In the early days, our focus was too narrow. While we effectively provided delivery capacity through a courier network, we soon recognized that large retailers and wholesalers faced broader omnichannel challenges. We needed scalability, so we went back to the drawing board and developed the robust platform OneRail is known for today.
**Interviewer:** Can you explain how OneRail’s platform addresses the complexities of last-mile logistics?
**Bill Catania:** Absolutely! Our platform intelligently selects optimal shipping modes, whether that’s same-day or next-day delivery, based on key factors like order data and performance metrics. It connects a vast network of drivers and logistics providers, ensuring that we can efficiently handle a wide range of deliveries with real-time support to address any issues that arise.
**Interviewer:** You’ve mentioned the complexity of deliveries being a significant challenge. How does OneRail tackle this issue?
**Bill Catania:** Deliveries come in all sizes and weights, so relying on a single delivery network often doesn’t work. Collaborating with various firms can be costly and create a fragmented experience for both staff and customers. Our platform aims to unify these processes, providing visibility and streamlined communication, which ultimately enhances the customer experience.
**Interviewer:** With the competitive landscape in last-mile logistics housing companies like Onfleet and Curri, how does OneRail differentiate itself?
**Bill Catania:** The market for last-mile delivery software is booming, projected to grow substantially in the coming years. OneRail stands out by offering a unified data approach and a comprehensive view of fulfillment, all at lower operational costs. Many of our clients have moved away from isolated solutions that became outdated during the pandemic, recognizing the need for an all-in-one system like ours.
**Interviewer:** Since November 2022, OneRail has experienced remarkable growth. What do you attribute this success to?
**Bill Catania:** Our growth is a direct reflection of addressing the real needs of our clients. With a staggering 254% revenue increase, we’ve been proactive about meeting market demands, enhancing our platform, and expanding our leadership team to drive innovation. We currently operate in over 400 cities across the U.S. and Canada, managing an extensive volume of deliveries efficiently.
**Interviewer:** What does the future hold for OneRail?
**Bill Catania:** The future is bright! We’re committed to continuing to evolve our offerings, enhancing our technology, and expanding our reach in response to growing market needs. Last-mile delivery is a vital component of e-commerce, and we plan to lead the charge in simplifying and optimizing that process for our clients.
**Interviewer:** Thank you, Bill, for sharing your insights and the story behind OneRail. We look forward to seeing how your company continues to innovate in the last-mile delivery space!
**Bill Catania:** Thank you! It’s been a pleasure discussing our journey and the exciting prospects ahead.