Peloton utilizing “new” delivery company RXO – Spin-Off of XPO Logistics – for Peloton Row deliveries

You may notice a new name on your delivery truck if you have ordered a Peloton Row, which began shipping after a lengthy presale phase. Peloton has reportedly partnered with RXO, a new delivery company.

RXO, it turns out, is a spin-off from XPO. This third-party logistics company has been a partner of Peloton for many years. The spin-off company was formed in the last few months. According to a XPO Press Release dated July 12, 2022:

XPO Logistics, Inc. (NYSE XPO), a leader in freight transportation services, announced today that a new company identity was created to support the planned spin-off of its tech-enabled brokerage portal. RXO is the new company name to represent the company’s commitment of reliability and outperformance. RXO will be available on the market with the slogan “Massive capacity. Cutting-edge technology.”

Transport Dive is a news site devoted to transport and trucking. It reported the announcement at that time. It also provided insight into XPO’s strategy and decision with their new spinoff company:

According to the company, the spinoff aims to automate their offer through XPO Connect. This technology platform tracks delivery times up to the minute. This move is in line with XPO CEO’s push for technology within the business.

This is one side of XPO’s effort to consolidate its services into separate businesses. XPO’s contract logistics spinoff with GXO Logistics was completed last August. XPO views spinning off its companies is a way to increase value for both itself and the spun-off firms.

Some Peloton members still receive their deliveries via XPO, instead of RXO. It is not clear at this time which areas are served by particular delivery companies. Peloton uses RXO and XPO in certain areas of the country. J.B. Hunt is another long-standing delivery partner. Other delivery partners are also used.

To remind you, Peloton stated earlier this year that in an effort to reduce fixed costs, they will be shifting 100% to third-party delivery and repairs in the US – working with companies like XPO, RXO and J.B. Hunt.

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