LaserShip

Last updated
LaserShip
Industry Last mile (transportation)
Founded1986;37 years ago (1986)
Headquarters Vienna, Virginia, U.S.
Number of locations
64 facilities (2018)
4 sortation centers (2018)
Area served
United States
Key people
  • Mark Holifield, CEO
  • Scott P. Nelson, COO
ServicesRegional carrier
Ground Service
Same-day Service
Weekend Delivery
Website lasership.com

LaserShip is a regional last-mile delivery company that services the Eastern and Midwest United States. [1] [2] [3] [4] Founded in 1986, LaserShip is based in Vienna, Virginia and has sorting centers in New Jersey, Ohio, North Carolina, and Florida. [5]

Contents

As of 2016, LaserShip has 63 distribution centers and four sorting centers servicing 22 states and Washington, D.C., [6] and handles deliveries for Amazon's Same Day Service. [7] [8]

In April 2019, LaserShip was awarded the International Supply Chain Protection Organization (ISCPO) Carrier Certification; [9] the company has also achieved compliance with ISCPO Carrier Security Requirements. [10]

LaserShip has been widely [11] [12] [13] [14] [15] [16] [17] criticized for drivers roughly handling goods, including throwing and driving over packages. LaserShip drivers have also been reported for damaging [18] and stealing [19] the personal property of recipients. The company has been penalized by multiple governments for misclassifying drivers as independent contractors, [7] [20] and for delivering untaxed cigarettes (for which the company was prosecuted under the Racketeer Influenced and Corrupt Organizations Act).

In 2021 LaserShip acquired west coast delivery service OnTrac for $1.3 billion. The two entities merged their delivery networks to form a transcontinental delivery network and rebranded their combined services to OnTrac. [21]

History

LaserShip began as a document delivery service in 1986. [22] In the 1990s, LaserShip landed in the small parcel business during the dot-com boom. In 1999, the company partnered with Barnes & Noble to provide same-day shipping services in New York City. [2]

In March 2014, LaserShip added four states to its service area: New Hampshire, Rhode Island, West Virginia and Delaware. This expanded the LaserShip footprint by 44 percent, reaching an additional 8.5 million consumers. [2] Also in March 2014, LaserShip acquired Cleveland-based last-mile delivery company Prestige Delivery Systems, [23] further expanding services to Ohio, Kentucky, Michigan and Indiana.

In early 2018, the company was purchased by private equity firm Greenbriar Equity Group. [24]

In May 2021, LaserShip expanded into Tennessee, opening three new branches in Memphis, Knoxville, and Nashville. [25] This expansion added 979 new zip codes, [26] an 18% increase of their delivery coverage. [27] In April 2023, the company announced plans to change its name to OnTrac. [28]

Disputes and settlements

Package tossing, property damage, and theft

Numerous news reports [11] [12] backed up by surveillance camera footage depict LaserShip delivery drivers recklessly tossing packages onto customers' property. A New York magazine article entitled "LaserShip, Amazon's New Shipping Partner, Might Be the Most Hated Company on the Internet" features a compilation video showing numerous such incidents at over a dozen different households, with packages ending up on porches, in front lawns, and on driveways. [13] [14]

Misclassification and non-payment of drivers

In April 2014, the company reached a class-action settlement of $800,000 with drivers in Massachusetts who accused the company of misclassifying them as independent contractors. [7] In November 2015, a class action lawsuit was filed in the United States District Court for the Southern District of New York alleging that workers were denied overtime payments, were unlawfully denied earned compensation, and for other violations of the Fair Labor Standards Act. [29] The results of this litigation are pending.

In June 2019, LaserShip was ordered to pay almost $600,000 to drivers in New Jersey who had been classified as independent contractors after an investigation by the US Department of Labor. [20]

Cigarette settlement

In September 2014, LaserShip reached a $5 million settlement with the city of New York over deliveries of untaxed cigarettes. The original suit alleged that LaserShip had delivered more than 120,000 cartons between 2011 and 2013 violating federal and state laws and resulting in tax losses of $1.9 million. The case was prosecuted under the Racketeer Influenced and Corrupt Organizations (RICO) Act. [30] Under the settlement agreement, LaserShip ended all cigarette shipments. [31] [32]

Related Research Articles

<span class="mw-page-title-main">United States Postal Service</span> Independent agency of the U.S. federal government

The United States Postal Service (USPS), also known as the Post Office, U.S. Mail, or Postal Service, is an independent agency of the executive branch of the United States federal government responsible for providing postal service in the U.S., including its insular areas and associated states. It is one of the few government agencies explicitly authorized by the Constitution of the United States. The USPS, as of 2021, has 516,636 career employees and 136,531 non-career employees.

<span class="mw-page-title-main">FedEx</span> American freight and package delivery company

FedEx Corporation, formerly Federal Express Corporation and later FDX Corporation, is an American multinational conglomerate holding company focused on transportation, e-commerce and business services based in Memphis, Tennessee. The name "FedEx" is a syllabic abbreviation of the name of the company's original air division, Federal Express, which was used from 1973 until 2000. FedEx today is best known for its air delivery service, FedEx Express, which was one of the first major shipping companies to offer overnight delivery as a flagship service. Since then, FedEx also started FedEx Ground, FedEx Office, FedEx Supply Chain, FedEx Freight, and various other services across multiple subsidiaries, often meant to respond to its main competitor, UPS. The company is the fifth largest American-headquartered employer globally with 547,000 employees, and FedEx is also one of the top contractors of the US government and assists in the transport of some United States Postal Service packages through their Air Cargo Network contract.

<span class="mw-page-title-main">United Parcel Service</span> American package delivery company

United Parcel Service is an American multinational shipping & receiving and supply chain management company founded in 1907. Originally known as the American Messenger Company specializing in telegraphs, UPS has grown to become a Fortune 500 company and one of the world's largest shipping couriers. UPS today is primarily known for its ground shipping services as well as the UPS Store, a retail chain which assists UPS shipments and provides tools for small businesses. UPS offers air shipping on an overnight or two-day basis and delivers to post office boxes through UPS Mail Innovations and UPS SurePost, two services that pass on packages to the United States Postal Service for last-mile delivery.

<span class="mw-page-title-main">Package delivery</span> Type of delivery service

Package delivery or parcel delivery is the delivery of shipping containers, parcels, or high value mail as single shipments. The service is provided by most postal systems, express mail, private courier companies, and less than truckload shipping carriers.

<span class="mw-page-title-main">Courier</span> Person or company delivering items

A courier is a person or organization that delivers a message, package or letter from one place or person to another place or person. Typically, a courier provides their courier service on a commercial contract basis; however, some couriers are government or state agency employees.

<span class="mw-page-title-main">FedEx Ground</span> American ground package delivery corporation

FedEx Ground, a subsidiary of the FedEx Corporation, is an American ground package delivery company headquartered in Moon Township, Pennsylvania, a suburb of Pittsburgh. The company began as Roadway Package System (RPS), founded in 1985 by transportation company Roadway Services Inc., later renamed Caliber System. FedEx bought Caliber in 1998 to complement its existing FedEx Express business and rebranded Caliber's RPS package delivery service FedEx Ground in 2000.

<span class="mw-page-title-main">History of United States postage rates</span> Aspect of history

The system for mail delivery in the United States has developed with the nation. Rates were based on the distance between sender and receiver in the early years of the nation. In the middle of the 19th century, rates stabilized to one price regardless of distance. Rates were relatively unchanged until 1968, when the price was increased every few years by a small amount. Comparing the increases with a price index, the price of a first class stamp has been steady. The logo for the Post Office Department showed a man on a running horse, even as the railroads and then motorized trucks and airplanes moved mail. In 1971, the Post Office became the United States Postal Service, with rates set by the Postal Regulatory Commission, with some oversight by Congress. Air mail became standard in 1975. In the 21st century, prices were segmented to match the sorting machinery in use; non-standard letters required slightly higher postage.

<span class="mw-page-title-main">FedEx Express</span> Cargo airline based in Memphis, Tennessee, United States

FedEx Express is a major American cargo airline based in Memphis, Tennessee, United States. As of 2023, it is the world's largest cargo airline in terms of fleet size and freight tons flown. It is the namesake and leading subsidiary of FedEx Corporation, delivering freight and packages to more than 375 destinations over 220 countries across six continents each day. FedEx Express is also the world's largest express transportation company.

OnTrac is a privately held logistics company that contracts regional shipping services in the Western United States. In 2021 OnTrac was acquired by east coast delivery firm LaserShip for $1.3 billion, the combined business was later rebranded back to OnTrac.

Hermes Europe GmbH is a German delivery company headquartered in Hamburg, owned by the retail company Otto GmbH.

<span class="mw-page-title-main">Google Express</span> Same-day shopping service from Google

Google Express, formerly Google Shopping Express, was a service from Google.

<span class="mw-page-title-main">Amazon Prime Air</span> Conceptual drone-based delivery system currently in development

Amazon Prime Air, or simply Prime Air, is a drone delivery service operated by Amazon. The service uses delivery drones to autonomously fly individual packages to customers, and launched in 2022.

<span class="mw-page-title-main">Delivery drone</span> Unmanned aerial vehicle (UAV) utilized to transport packages, food or other goods

A delivery drone is an unmanned aerial vehicle (UAV) used to transport packages that include medical supplies, food, or other goods. Given their life-saving potential, use cases for medical supplies in particular have become the most widely-tested type of drone delivery, with trials and pilot projects in dozens of countries such as Australia, Canada, Botswana, Ghana, Uganda, the UK, the US among others. Delivery drones are typically autonomous and electric, sometimes also operated as a part of a fleet.

Doorman was a privately held American technology company specializing in logistics services and products. The company managed and operated fulfillment centers and independent driver fleets in densely-populated urban areas, addressing the last mile gap between online retailers and their customers. It also developed, marketed and operated the Doorman mobile app, which allowed consumers to use their iOS or Android-based smartphone to schedule evening delivery of goods purchased online, or arrange pick up of goods intended to be shipped back to an online retailer.

<span class="mw-page-title-main">LSO (company)</span> Regional shipping carrier

LSO, originally known as Lone Star Overnight, was an Austin, Texas-based regional shipping carrier that focuses on Express next day delivery, utilizing both air and ground transportation in Texas, southeastern New Mexico, certain metro markets in Oklahoma, Louisiana, Arkansas, Alabama & Tennessee, as well as northern Mexico.

<span class="mw-page-title-main">Prime Now</span> Subsidiary of Amazon

Prime Now, LLC is a subsidiary of Amazon that oversees its same-day grocery shopping and delivery service. The name also originated a brand, including a custom app, to distinguish the service from Amazon's other offerings, but both the branding and the app have since been discontinued. The service is used chiefly by the company's own Whole Foods Market and Amazon Fresh subsidiaries. An Amazon Prime subscription includes and is required for access to the service, though it may not be available in all locations where Amazon Prime is offered. Third-party retail partners may also participate in the service and sell goods through Amazon's website.

Intelcom Express is a Canadian courier and package delivery company headquartered in Montreal, Quebec. The company delivers nearly 500,000 parcels per day across Canada.

<span class="mw-page-title-main">Roadie (app)</span> American crowdsourced delivery platform

Roadie Inc. is an American crowdsourced delivery platform for business and private same-day, urgent and scheduled delivery in the United States. The company was founded in 2014 and launched its web and mobile apps in January 2015. As of September 2021, it reported having over 200,000 drivers covering more than 20,000 zip codes.

<span class="mw-page-title-main">Package theft</span> Theft of a package or parcel

Package theft or cargo theft is the theft of a package or parcel. It can occur anywhere in the distribution channel. One major type is porch piracy which has been defined as, "Taking possession of a package or its contents, outside of a residence or business, where it has been commercially delivered or has been left for commercial pickup, with intent to deprive the rightful owner of the contents or even try to sell the contents.

<span class="mw-page-title-main">Parcel locker</span> Self-service collection service for parcels

A parcel locker is an automated postal box that allows users for a self-service collection of parcels and oversize letters as well as the dispatch of parcels.

References

  1. "Parcel - May/June 2015". Nxtbook.com. Retrieved 2017-12-15.
  2. 1 2 3 Abha Bhattarai (April 13, 2014). "LaserShip looks to expand to the midwest". The Washington Post. Retrieved July 31, 2014.
  3. Laura Stevens and David Benoit (November 12, 2013). "Activist Investor Daniel Loeb Takes FedEx Stake". The Wall Street Journal. Retrieved July 31, 2014.
  4. "Hot Companies 2013". Parcel Magazine. July–August 2013. Retrieved July 31, 2014.
  5. "LaserShip, Last Mile Solutions! - E-Commerce". Archived from the original on 2015-10-01. Retrieved 2015-09-30.
  6. Parcel Magazine >https://issuu.com/rbpublishing/docs/par_mayjune?e=2333928/35918877 [ bare URL ]
  7. 1 2 3 "Meet The Real Amazon Drones". Huffington Post. April 24, 2014. Retrieved January 13, 2016.
  8. "Amazon's Enormous Same-Day Delivery Growth Comes At A Price". Huffington Post. December 26, 2014. Retrieved January 13, 2016.
  9. "Regional Transportation Carrier Awarded Notable Security Certification". Loss Prevention Magazine. April 18, 2019. Retrieved May 6, 2019.
  10. ISCPO (April 15, 2019). "LaserShip, Inc. is the latest to be ISCPO Carrier Certified" . Retrieved May 6, 2019.
  11. 1 2 Monfort, Ashley. "Home video shows delivery drivers throwing packages at Ashland home" . Retrieved 2017-12-01.
  12. 1 2 Jeff Peters (2016-12-22), NBC 12 Interview - LazyShip (aka LaserShip) , retrieved 2017-12-01
  13. 1 2 Nosowitz, Dan. "LaserShip, Amazon's New Shipping Partner, Might Be the Most Hated Company Online". Select All. Retrieved 2017-12-01.
  14. 1 2 Archived at Ghostarchive and the Wayback Machine : "LaserShip Delivery Montage". YouTube .
  15. "Watch How Amazon Delivered a $500 Camera Lens". PetaPixel. 2016-07-25. Retrieved 2017-12-01.
  16. Rob Blake (2017-02-20), LaserShip Driver Attempts to steal package until he is caught. , retrieved 2017-12-01
  17. "Caught On Video: Meriden police involved after delivery driver throws delicate package". WTNH Connecticut News. 2017-03-23. Retrieved 2017-12-01.
  18. "Delivery man drops package off in grass, runs over orange tree". WINK NEWS. 2018-01-18. Retrieved 2018-08-24.
  19. Lisik, Brian (2019-07-08). "Delivery man caught on camera burglarizing home: Brunswick Police Blotter". cleveland.com. Retrieved 2019-07-23.
  20. 1 2 Attrino, Anthony G. (2019-06-26). "Delivery company in N.J. to pay nearly $600K in back pay to drivers". nj.com. Retrieved 2019-07-23.
  21. https://www.wsj.com/articles/lasership-is-buying-package-carrier-ontrac-in-a-1-3-billion-deal-11634166579
  22. Solomon, Mark (2021-06-09). "Long controversial and now cooking, LaserShip rides the parcel-delivery wave". FreightWaves. Retrieved 2023-05-26.
  23. "LaserShip expands footprint in New Jersey to meet growing ecommerce demand".
  24. Burney Simpson (March 28, 2018). "Supply Chain Technology Leads M&A Wishlist". Transport Topics. Retrieved August 15, 2018.
  25. www.bizjournals.com https://www.bizjournals.com/memphis/news/2021/06/03/lasership-starts-up-memphis-facility.html . Retrieved 2021-06-14.{{cite web}}: Missing or empty |title= (help)
  26. Garland, Max. "LaserShip's Tennessee expansion part of growing delivery alternative to FedEx, UPS". The Commercial Appeal. Retrieved 2021-06-14.
  27. "Parcel carrier LaserShip opens facility in Cordova". Memphis Local, Sports, Business & Food News | Daily Memphian. Retrieved 2021-06-14.
  28. Solomon, Mark (2023-04-10). "OnTrac, LaserShip rebrand into 'OnTrac' name". FreightWaves. Retrieved 2023-07-26.
  29. Crosby and Lewis v. Lasership, Inc., Et Al., Index Number 08694-CV-2015, SDNY - retrieved through pacer.gov and http://www.fslawfirm.com/pdfs/cs/Lasership-Complaint.pdf
  30. "Racketeer Influenced and Corrupt Organizations Cases, Dockets and Filings in the District of New York". Justia Dockets & Filings. Retrieved 2017-12-14.
  31. "City reaches $5M settlement in cigarette case". Crain's New York Business. September 25, 2014. Retrieved January 13, 2016.
  32. "Delivery company in un-taxed cigarette racket to pay $5M". New York Post. September 24, 2014. Retrieved January 13, 2016.

Further reading