Hub Group is a transportation management company in North America, providing intermodal, truck brokerage and logistics services. A publicly traded company with over $3.5 billion in revenue, the company also owns Mode Transportation (formerly Exel Transportation Services), a third party logistics company (Unyson); and Hub Group Trucking, which provides intermodal freight transport and

drayage Drayage is the transport of goods over a short distance in the shipping and logistics industries. Drayage is often part of a longer overall move, such as from a ship to a warehouse. Some research defines it specifically as "a truck pickup from ...

services. Hub Group was founded in 1971 by Phillip Yeager, and is currently run by his son David. The company went public in 1996 and is headquartered in

Oak Brook, Illinois Oak Brook is a village mostly in DuPage County with a small portion in Cook County in Illinois. Per the 2020 census, the population was 8,163. This suburb of Chicago has the headquarters of several companies and organizations including Ace H ...

History

Hub Group Intermodal Double Stack Containers

In 1971, Phillip and Joyce Yeager founded Hub Group (then known as Hub City Terminals) in

Hinsdale, Illinois Hinsdale is a village in Cook and DuPage counties in the U.S. state of Illinois. Hinsdale is a western suburb of Chicago. The population was 17,395 at the 2020 census, most of whom lived in DuPage County. The town's ZIP code is 60521. The town ...

. The company was started with $10,000 and was located in a windowless, one-room office above a flower shop. The 43-year-old Phillip Yeager quit his job at the

Pennsylvania Railroad The Pennsylvania Railroad (reporting mark PRR), legal name The Pennsylvania Railroad Company also known as the "Pennsy", was an American Class I railroad that was established in 1846 and headquartered in Philadelphia, Pennsylvania. It was named ...

, where he had worked for 19 years, to create Hub Group. At the time of its formation, Hub City Terminals worked as a shipper's agent, which was an intermediary that booked intermodal transportation with railroads. In 1975, Yeager and his wife set up a series of S corporations to expand their business. Each office operated separately and had its own profit and loss center. Hub City Terminals was renamed Hub Group in 1985. In 1995, Phillip Yeager’s son, David Yeager, became chief executive officer of Hub Group. He had been with the company since 1975, when he opened the company's

Pittsburgh Pittsburgh ( ) is a city in the Commonwealth (U.S. state), Commonwealth of Pennsylvania, United States, and the county seat of Allegheny County, Pennsylvania, Allegheny County. It is the most populous city in both Allegheny County and Wester ...

, Pennsylvania regional office. David Yeager became co-chairman of the company in 1992. In 1996, Hub Group held an

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...

. A year later, in 1997, the company became the first intermodal marketing company to top $1 billion in yearly revenue. Hub Group had 34 regional offices by 1998, when the company borrowed $100 million to begin purchasing all outstanding minority interests in the company's regional offices. The company moved from a geography-based operation with multiple regional offices to a centralized operation with a single profit and loss center headquartered in

Lombard, Illinois Lombard is a village in DuPage County, Illinois, United States, and a suburb of Chicago. The population was 43,165 at the 2010 census. The United States Census Bureau estimated the population in 2019 to be 44,303. History Originally part of ...

in 2004. The reorganization effort allowed Hub Group to compete as a single network. Mark Yeager was appointed president and chief operating officer in April 2005. Mark Yeager had joined Hub Group in 1992 and served as president of the company's field operations immediately prior to his appointment. Hub Group acquired

Memphis, Tennessee Memphis is a city in the U.S. state of Tennessee. It is the seat of Shelby County in the southwest part of the state; it is situated along the Mississippi River. With a population of 633,104 at the 2020 U.S. census, Memphis is the second-mos ...

-based

company Comtrak Logistics for $48 million in 2006. The two companies had worked together for over 20 years by the time of the acquisition. The deal included Comtrak's client lists and proprietary transportation tracking software. Hub Group founder and Chairman Phillip Yeager died in October 2008 from complications following a heart attack. Yeager was 80 years old. Company CEO David Yeager became chairman of Hub Group in November 2008. In 2017, Hub Group acquired Estenson Logistics, a national provider of dedicated trucking with nearly 100 operating sites for approximately $306 million. As a part of the acquisition, the name was retired and now operates under the Hub Group brand. In 2018, Hub Group acquired CaseStack Logistics, a consolidation and warehousing provider that predominantly operates in the consumer packaged goods and retail space, for $225 million. CaseStack now operates under a product of Hub Group called CaseStack Retail Supplier Solutions. In 2020, Hub Group acquired NonstopDelivery, LLC (“NSD”) for $94.5 million. Founded in 2000, NSD’s delivery network includes over 170 agent locations, which enables service to all U.S. zip codes. In 2021, Hub Group acquired Preston, MD based Choptank Transport for $130 million cash-on-hand. Founded in 2003, Choptank has a carrier network of over 200,000 carriers who specialize in refrigerated and frozen transportation. In 2022, Hub Group acquired TAGG Logistics for $103 million cash on hand. Founded in 2006, TAGG provides ECommerce and Omnichannel fulfillment with over 23 fulfillment locations.

References

{{Authority control Companies based in DuPage County, Illinois Transport companies established in 1971 Oak Brook, Illinois Logistics companies of the United States 1971 establishments in Illinois Companies listed on the Nasdaq 1996 initial public offerings 1971 establishments in the United States Business services companies established in 1971 Transportation companies based in Illinois