OnTrac CEO Mike Duffy will leave the multi-regional parcel carrier at the end of the month to be the Chief Executive Officer of U.K.-based pest control specialist Rentokil Initial PLC.
Duffy will be based in North America, Rentokil’s largest market, the company said.
Privately-held OnTrac, which is positioning itself as the largest alternative carrier to FedEx and UPS, on Tuesday promoted Mike Brown to succeed Duffy, who led the company for nearly four years. Brown will move into his new role on Feb. 1. The last-mile delivery company characterized the executive moves as a planned transition, but planned transitions are normally announced far in advance of a CEO’s retirement. The news release only said Duffy has accepted an opportunity outside OnTrac.
Brown currently serves as OnTrac’s chief financial officer after management roles at Amazon, Chewy, Flexport, Accenture, Johnson Controls and Honeywell. Over the past 18 months, Brown has played a central role in shaping OnTrac’s operating model, investment priorities, and long-term strategy.
OnTrac, based in Chantilly, Virginia, is owned by private equity firm American Securities. The leadership change follows what OnTrac said was a record year for parcel volumes, which it attributed to customer growth and the expansion of its network
“OnTrac has reached an important inflection point,” said David Horing, OnTrac’s chairman and managing director at American Securities. “The integration is complete, the network is operating at national scale, and customer demand continues to grow. Mike Brown is the right leader to build on that momentum — expanding our relevance with shippers, sharpening our differentiation in the market, and leading the company into its next chapter as a scaled challenger in U.S. parcel delivery.”
During Duffy’s tenure, OnTrac completed the integration with LaserShip to emerge with a unified network that reaches more than 75% of U.S. online shoppers. OnTrac covers 35 states and the District of Columbia, with a gap in the Great Plains. The carrier partners with more than 7,000 independent contractors to make same-day and next-day residential and business deliveries using a hub-and-spoke network. The company has 102 delivery locations and 18 sort centers, according to its website.
The carrier is in the process of establishing a coast-to-coast network. A two-to-three day Express delivery product is scheduled to be rolled out early this year in partnership with ClearJet. The service is pitched as cheaper than traditional express air, but faster than transcontinental ground transportation.
The company in the first quarter also plans to launch a new deferred delivery product called Ground Essentials, designed for brands and logistics providers shipping non-urgent parcels at scale.
Brown said his focus will be on attracting more retail customers looking for speedy, flexible shipping service with good in-transit visibility for each package, and scaling new services.
OnTrac named Evan Weintraub, vice president of accounting and corporate controller, to succeed Brown as CFO.
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