government branch
Houston e-commerce giant Cart.com launches government-focused subsidiary
Houston e-commerce and logistics unicorn Cart.com has launched a new subsidiary.
Cart Government Solutions (CGS), which was announced earlier this week, will provide supply chain and logistics services and software for the federal and state government sectors. The new subsidiary will be headquartered in Washington, D.C., and operate out of about 6 million square feet of secure warehouse space across 14 U.S. facilities, according to a news release from Cart.com. It will support both domestic and overseas logistics.
Industry veteran Gregg Zegras will lead the new entity as president. Zegras previously served as Cart.com's chief revenue officer, according to LinkedIn. Before that, he served as president of Connecticut-based Pitney Bowes Global eCommerce, a digital shipping solutions company.
Remington Tonar, Cart.com's co-founder, will serve as CGS's chief innovation officer.
“Government agencies face procurement and logistics challenges that many commercial platforms simply weren’t built to solve,” Zegras said in the news release. “Cart Government Solutions exists to change that. We’re combining the speed and innovation of a technology company with the compliance rigor, security, and operational depth that federal and state customers require, and we’re doing it with a team that has spent careers working alongside and inside these agencies.”
According to the company, CGS will focus on meeting compliance and security requirements in the public sector. Some of the services the new entity will offer include:
- Inventory management
- Cold-chain and specialty storage for pharmaceuticals, medical devices and regulated goods
- Enterprise-grade supply chain software
- Government-compliant webstores and online ordering portals
- Cybersecurity operations
Cart.com has been serving the public sector since 2022, when the company began distributing COVID-19 health supplies nationwide, according to the news release. Through that pandemic-era contract, the company reports it moved more than 725 million units, with an average of under two days per shipment.
Cart.com was founded in Houston in 2020, though it briefly moved its headquarters to Austin. The company reached unicorn status with its $60 million Series C raise in 2023. It most recently raised $180 million in growth capital from private equity firm Springcoast Partners in March, which put the startup over the $1 billion in fundraising mark in just six years.
At the time, Cart.com said it planned to scale its logistics network, expand AI capabilities and develop workflow automation tools.
Houston-based KBR Inc. also recently launched a government services spinoff. Read more here.
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