What is OnTrac? The Regional Delivery Service Explained

In simple terms, OnTrac is a regional delivery company specializing in providing same-day and next-day shipping services for businesses and customers across the Western United States. But there’s much more to this carrier than meets the eye. This in-depth guide will explore the ins and outs of OnTrac, covering its services, operations, history, and competitive advantages.

Here’s a quick overview of what will be covered:

• The array of delivery services OnTrac offers, from e-commerce fulfillment to healthcare logistics
• How OnTrac has evolved since its humble beginnings in 1991
• An inside look at OnTrac’s extensive delivery network and operations
• The key benefits of using OnTrac over national carriers like cost savings and faster transit times
• OnTrac’s various partnerships and software integrations that enhance its capabilities
• The company’s core values, company culture, and community impact initiatives

OnTrac Delivery Services

At its core, OnTrac is known for its speedy same-day and next-day delivery options for parcels. This flagship service caters to businesses and individual customers looking for ultra-fast shipping across the Western states.

But OnTrac’s offerings extend far beyond that. The company provides comprehensive parcel shipping, distribution, and logistics solutions tailored to the unique needs of several industries:

E-commerce Last-Mile Delivery

In the rapidly growing e-commerce landscape, OnTrac has become a go-to partner for many leading retailers and direct-to-consumer (DTC) brands. Its extensive last-mile delivery network ensures that online orders reach customers’ doorsteps swiftly and reliably.

With OnTrac’s focus on handling smaller packages, e-commerce businesses can leverage cost-effective shipping rates while meeting consumer expectations for fast deliveries.

Healthcare and Retail Logistics

The healthcare and retail sectors have stringent requirements when it comes to shipping sensitive products and materials. OnTrac’s specialized logistics services are designed to accommodate these needs, providing secure and timely distribution of medical supplies, pharmaceuticals, and retail merchandise.

Other Specialized Services

Depending on the unique requirements of businesses, OnTrac offers customized solutions. These may include white-glove delivery services, return logistics management, and more, ensuring a seamless experience for both the client and the end customer.

History and Growth of OnTrac

OnTrac’s journey began in 1991 when it was founded as “California Overnight” in South San Francisco. Initially focused on providing an affordable alternative for document shipping within California, the company quickly expanded its footprint to seven additional Western states: Arizona, Nevada, Oregon, Washington, Utah, Colorado, and Idaho.

As e-commerce boomed in the late 1990s and early 2000s, OnTrac recognized the growing demand for efficient last-mile delivery services. The company adapted its business model, shifting its focus to parcel shipping and logistics for online retailers and other businesses.

In 2021, OnTrac reached a significant milestone when it was acquired by the East Coast delivery firm LaserShip for $1.3 billion. This strategic merger paved the way for the creation of a truly national delivery network, combining the complementary strengths of both companies.

OnTrac Operations and Network

To power its extensive delivery services, OnTrac relies on a robust operational network spanning 35 states and Washington, D.C. At the heart of this network are:

Over 7,000 Independent Contractors: Rather than employing drivers directly, OnTrac partners with thousands of independent contractors who handle the last-mile deliveries. This model allows for greater flexibility and scalability while maintaining a strong local presence across the service area.

Hub-and-Spoke Delivery Model: OnTrac’s operations follow a hub-and-spoke system, with strategically located sorting facilities acting as hubs for efficient package distribution to local service areas.

Extensive Infrastructure: To support its operations, OnTrac maintains a vast infrastructure, including sorting centers, distribution hubs, and over 600 drop boxes conveniently located for customers and contractors.

OnTrac’s services cover a broad area, but it has a especially strong presence in Arizona, California, Nevada, Oregon, Utah, and Washington where key operational hubs are located.

Independent Contractor Model

A unique aspect of OnTrac’s operations is its reliance on independent contractors for last-mile deliveries. Rather than employing drivers directly, the company partners with over 7,000 independent contractors who use their own vehicles adorned with the OnTrac logo.

This model offers several advantages for OnTrac, including increased scalability, cost-effectiveness, and a strong local presence across its service areas. However, it has also faced some controversies and legal challenges related to worker classification and compensation issues, which the company has worked to address.

Competitive Advantages of Using OnTrac

While national carriers like FedEx, UPS, and the United States Postal Service (USPS) dominate the shipping industry, OnTrac has carved out a niche by offering distinct advantages to businesses and customers in the Western states:

Faster Delivery Times: With its regional focus and optimized logistics network, OnTrac boasts significantly faster transit times compared to national carriers for deliveries within its service area. This speed advantage, often measured in days, can be a game-changer for businesses looking to meet customer expectations and build brand loyalty.

Cost Savings: By specializing in handling smaller packages and optimizing its operations, OnTrac can offer average cost savings of 10-35% compared to national carriers. These savings can directly impact a business’s bottom line, making OnTrac an attractive option for cost-conscious shippers.

High On-Time Performance: Reliability is crucial in the delivery business, and OnTrac prides itself on maintaining an impressive on-time delivery rate of 97% or higher. This level of consistency ensures that packages arrive when promised, minimizing delays and disruptions for businesses and customers alike.

Carrier Diversification: Many businesses have recognized the risks of relying solely on one or two national carriers. By incorporating OnTrac into their carrier mix, companies can mitigate these risks, increase flexibility, and leverage the strengths of each carrier for different shipping needs.

Comparison to USPS, FedEx, and UPS

While OnTrac may not be a household name like the major national carriers, it has carved out a significant presence in the Western United States. Here’s a quick comparison:

• Coverage Area: OnTrac’s delivery network spans 35 states and Washington, D.C., reaching 70% of the U.S. population. In contrast, USPS, FedEx, and UPS offer nationwide coverage.
• Delivery Speed: For shipments within its service area, OnTrac often provides faster transit times than national carriers, thanks to its regional focus and optimized logistics.
• Pricing: OnTrac’s specialized operations allow it to offer lower shipping rates, particularly for smaller packages, compared to national carriers.
• Service Offerings: While OnTrac specializes in parcel shipping and last-mile delivery, national carriers offer a broader range of services, including freight, international shipping, and more.

The choice between OnTrac and national carriers depends on shipping needs, delivery speed, cost, and desired carrier diversification for a business.

Partnerships and Integration

To enhance its capabilities and provide seamless experiences for customers, OnTrac has cultivated strategic partnerships and integration with various platforms and providers:

SmartWay Transport Partner: OnTrac is a certified SmartWay Transport Partner, collaborating with the EPA to improve supply chain sustainability and reduce environmental impact.

USPS Workshare Partner: Through its partnership with the United States Postal Service (USPS), OnTrac can leverage the vast USPS network for specific delivery needs, expanding its reach and service offerings.

Software Integrations: OnTrac integrates with over 30 multi-solution software providers, allowing businesses to seamlessly incorporate OnTrac’s services into their existing platforms and workflows.

These partnerships and integrations demonstrate OnTrac’s commitment to adapting to the evolving needs of its customers and the broader logistics industry.

OnTrac Company Values and Culture

Beyond its delivery services and operations, OnTrac places strong emphasis on its core values and company culture, which are deeply ingrained in its approach to business and community involvement.

Honor Commitments: At OnTrac, keeping promises is paramount. The company strives to stand behind its commitments to customers, partners, and employees, celebrating achievements along the way.

Prioritize Safety: Employee well-being is a top priority, with a focus on fostering a safe working environment and providing resources for self-care and support.

Show Respect: OnTrac promotes an inclusive and supportive culture built on mutual respect, diversity, and understanding of different perspectives.

Operate Efficiently: Continuous improvement and problem-solving are encouraged, with a focus on making financially sound, data-driven decisions and acting with urgency.

Foster Relationships: OnTrac values building strong connections with its team members, customers, partners, and the communities it serves. The company aims to be responsive, act as a catalyst for positive change, and contribute to the betterment of the regions where it operates.

This relationship-focused approach extends beyond business operations. OnTrac actively participates in community impact initiatives, leveraging its geographical footprint and logistics capabilities to support disaster recovery efforts, hunger relief programs, and health improvement campaigns.

By living out its core values, OnTrac cultivates a workplace culture that encourages personal growth, fosters a sense of purpose, and drives the company’s mission of delivering fast and reliable service for every package, every day.

Ending Thoughts

OnTrac started as a document shipping service in California. It has grown into a major delivery company in the Western United States. OnTrac offers fast, affordable, and reliable shipping for businesses. It uses independent contractors and has many locations. OnTrac works with e-commerce, healthcare, and other companies needing quick last-mile delivery.

Recently, OnTrac merged with LaserShip. This allows OnTrac to ship across the entire United States. As demand for fast shipping increases, OnTrac is well-positioned for further growth.

OnTrac values commitments, safety, respect, efficiency, and relationships. It aims to satisfy employees, customers, and communities. Businesses and consumers can rely on OnTrac for their shipping needs due to its speed, cost-effectiveness, and dedication to good service.