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RXO expands carrier loyalty rewards program

Transportation company RXO Inc. said it has expanded its carrier loyalty program to include discounts on hotels, subscriptions to ad-free music station Sirius XM, as well as access to load boards.

The program, called RXO Extra, was announced Wednesday and builds on an initiative launched in September 2019 when the company’s portfolio was part of XPO Inc. (NYSE: XPO). RXO (NYSE: RXO) was spun off from XPO last year.

Under the original loyalty program, carriers receive discounts on fuel, maintenance and retail purchases, among other savings, the company said. Those programs remain in effect.

The new name represents a rebrand of the original program, which went by the more generic name of “Loyalty Rewards.”

Under the program, carriers can redeem rewards points for higher compensation from RXO, Lou Amo, president of the company’s brokerage business, told FreightWaves.

Rewards are based on four tiers: Platinum, Gold, Silver and Bronze. RXO grades its carriers on volume and service levels when hauling its freight.

The loyalty program is aimed at smaller carriers with 10 or fewer trucks, Amo said. These carriers account for about 97% of the nation’s truck fleet. Carriers are eligible to enroll even if they don’t move loads for RXO, he said.

About 108,000 carriers are enrolled in the program, a 48% increase year on year, according to RXO data.

Amo said the program has been effective in building “stickiness” with drivers, resulting in improved service and broader access to capacity for RXO. It also enhances the digital relationship between RXO and its carriers.

According to RXO data, enrolled carriers have downloaded the “RXO Drive” app 850,000 times, up 53% year on year. Approximately 81% of loads were created or covered digitally.

Charlotte, North Carolina-based RXO generates most of its business from freight brokerage, ranking as the nation’s fourth-largest broker. It also handles managed transportation, final-mile and freight forwarding. RXO is the largest provider of final-mile transportation of big and bulky goods in the U.S.