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DoorDash Cleared for Takeoff; Higher Prices Boost C.H. Robinson; JetZero Takes On Boeing By Mark R. Long | WSJ Logistics Report
DoorDash is adding a new mode of transport after years of rushing online orders to customers' homes via bike couriers and drivers, the WSJ Logistics Report's Liz Young writes.
DoorDash on Wednesday said it has secured a key certification from the Federal Aviation Administration to make commercial deliveries using drones . The company is developing its own drones, along with the ground infrastructure and digital systems needed to coordinate order pickup and delivery.
The move takes the San Francisco-based company directly into the emerging market for aerial deliveries . DoorDash has offered drone delivery in some areas of the U.S. for the past four years through partnerships with drone operators such as Alphabet unit Wing and Flytrex. But to date, the company hasn't manufactured its own drones.
DoorDash said it plans to continue those partnerships. The company plans to operate an end-to-end system that handles routing, order fulfillment and setting up designated areas where stores and restaurants can hand off items to drones.
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Number of the Day Corporate Results
C.H. Robinson Worldwide reported higher earnings as increased prices boosted the company's top line . The freight brokerage company Wednesday posted a second-quarter profit of $186.8 million, or $1.56 a share, up from $152.5 million, or $1.26 a share, a year earlier.
On an adjusted basis, earnings came in at $1.61 a share, ahead of Wall Street forecasts, The Wall Street Journal's Elias Schisgall reports. Revenue rose 19% to $4.93 billion, also beating analyst expectations, driven largely by higher pricing in the company's truckload, less-than-truckload, air and ocean services.
The results follow a jury in Texas issuing an advisory verdict
tied to a trucking accident that involved a contracted motor carrier. Although the advisory verdict is subject to post-trial proceedings, it could put the company on the hook for up to $604 million in damages, C.H. Robinson said earlier this week. It said it expects to appeal if the jury's verdict is finalized.
Canadian Pacific Kansas City reported lower quarterly profit
and said that the railroad's board chair, Isabelle Courville, was retiring. (WSJ) ArcBest said its adjusted second-quarter profit rose 71.8% to $53.6 million, excluding charges for a restructuring announced July 16 that includes a 2% workforce reduction. Aerospace
The U.S. government is swinging behind a fledgling startup's moonshot bid to dislodge Boeing as America's only major maker of commercial airliners, the WSJ's Benjamin Katz writes.
The aircraft that JetZero wants to do it with looks more like a manta ray than the tube-with-wings blueprint that has been the default for over 70 years. If JetZero can cross the line, the blended-wing aircraft would mark the biggest shift
in passenger-jetliner design since the supersonic Concorde.
JetZero last week reached an early deal with the U.S. Export-Import Bank as part of its Make More in America Initiative for as much as $3 billion in loans and guarantees that the company needs to build its first factory. Chief Executive Tom O'Leary says he is targeting a first prototype flight of the aircraft, known as the Z4, by the end of next year.
In Other News U.S. commercial crude oil inventories fell by a larger-than-expected 7.2 million barrels
last week. (WSJ) Lysol maker Reckitt Benckiser plans to raise prices
in North America and Europe to offset higher input costs triggered by the war in Iran. (WSJ) Bunge raised its earnings outlook
after strong performance in the agriculture company's soybean and softseed businesses drove second-quarter sales up nearly 90%. (WSJ) BMW plans to cut 8,000 white-collar jobs
in Germany through a voluntary severance program following a plunge in sales in China. (WSJ) Brookfield Asset Management and power company NextEra Energy are teaming up to build a $100 billion AI data center
on the Energy Department's Paducah uranium-enrichment site in western Kentucky. (WSJ) The U.S. imposed sanctions
on the Persian Gulf Marine Insurance Co. and the HormuzSafe Marine Services Authority, which it said were demanding money for safe passage through the Strait of Hormuz. (TradeWinds) Paccar's CEO said the parent company of Kenworth and Peterbilt has no plans to remove human drivers from autonomous trucks it is developing with partners. (Transport Topics) Lineage Logistics filed a permit application to rebuild
a Los Angeles warehouse that is still being cleared of millions of pounds of rotting food after burning in June, leading to weeks of complaints. (NBC Los Angeles) About Us
Mark R. Long is editor of WSJ Logistics Report. Reach him at [mark.long@wsj.com]. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long , Liz Young and Paul Berger .
This article is a text version of a Wall Street Journal newsletter published earlier today.
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