When OneRail in early 2020 decided to consolidate its Florida and North Carolina operations in Orlando, the last-mile delivery software firm employed nine people.
Eighteen month later, OneRail employs 80 people and expects to grow to a team of 200 by the end of 2022, CEO Bill Catania told Orlando Inno. That rapid growth will be aided by a $9 million Series A investment round, OneRail announced Aug. 31.
The company will grow its team and connect its platform with more delivery methods as e-commerce and on-demand delivery increases the need for logistics services.
The investment will further accelerate growth at a company already expanding rapidly. In addition to 789% growth in its workforce, OneRail in the past 18 months raised $21.5 million and multiplied its revenue by 10 year-over-year.
OneRail offers a digital platform that clients can use to manage its last-mile courier network. The firm works with carrier partners like Lyft and DoorDash, and its courier network includes roughly eight million drivers across 200 cities. However, OneRail will boost its presence further, expecting to make 2 million deliveries a week by first-quarter 2021 and working on integration with cutting-edge delivery methods such as drones and self-driving vehicles, Catania said. “It’s all about scale right now.”
Plus, OneRail will need to expand its Orlando office, which can hold 140 people. OneRail’s job growth is important because the company creates high-wage jobs. For example, the 16 open positions listed on the company’ website include developers and logistics coordinators. These positions in metro Orlando pay average annual wages between $72,180-$95,870, more than the region’s average annual wage of $48,530, according to the U.S. Bureau of Labor Statistics.
The latest investment round was led by Austin, Texas-based venture capital fund Ironspring Ventures. The investment firm recognizes value in OneRail as consumers demand more efficient e-commerce deliveries, said Ironspring Managing Partner Ty Findley in a prepared statement. Findley will join OneRails’ board of directors. “OneRail’s 10-times year-over-year revenue growth with major Fortune 500 customers is indicative of how well this team has executed to establish clear product market fit.”
E-commerce was popular before the Covid-19 pandemic, but its use is increasing. U.S. retail e-commerce sales were at $222.5 billion in the second quarter, according to the U.S. Census Bureau. That was up 3.3% from the first quarter and 9.1% from second-quarter 2020.
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