Cart.com Launches Cart Government Solutions to Modernize Public Sector Supply Chains

Cart.com has launched Cart Government Solutions (CGS), a dedicated subsidiary designed to bridge the gap between commercial commerce technology and the stringent security requirements of the public sector. For fintech and logistics professionals, this move signals a sophisticated pivot toward high-compliance government contracts, leveraging enterprise-grade software to manage complex, large-scale federal procurement and distribution.

What was announced

The launch of Cart Government Solutions establishes a Washington, D.C.-based entity focused exclusively on the operational and compliance needs of federal and state agencies. The subsidiary operates roughly 6 million square feet of secure warehouse space across 14 facilities in the continental United States. These facilities are equipped to handle a diverse range of inventory, including pharmaceuticals, medical devices, heavy machinery, and apparel.

CGS offers an integrated suite of supply chain tools, including Vendor Managed Inventory (VMI) for real-time monitoring of Government Furnished Property (GFP). The technical infrastructure includes CGMP-compliant cold-chain storage for refrigerated and ultra-cold goods, alongside enterprise-grade order and warehouse management software. To meet the specific demands of public sector procurement, CGS provides secure digital commerce portals and webstores that integrate cybersecurity-first operations, featuring real-time threat detection and vulnerability management.

The subsidiary is led by Gregg Zegras, who brings 25 years of industry experience. The leadership team also includes John Jones, Senior Vice President of Business Development, and Stacey Washington, a retired U.S. Army lieutenant colonel serving as Senior Vice President of Operations. This team oversees a logistics framework that has already demonstrated significant scale; since 2022, the underlying infrastructure has moved over 725 million units for pandemic health supply distribution, achieving an average shipment time of under two days and generating $10 million in annual shipping savings.

"Government agencies face procurement and logistics challenges that many commercial platforms simply weren’t built to solve. 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."

Gregg Zegras, President of Cart Government Solutions.

The companies involved

Cart.com is a commerce solutions provider that offers a comprehensive suite of software and services designed to scale brands and organizations. The company has established a significant footprint in the commercial sector, providing the backend infrastructure for a variety of well-known brands across different verticals. Its client roster includes apparel and lifestyle brands such as Janie & Jack, PacSun, and Thursday Boots, as well as beauty and wellness companies like Milk Makeup, ILIA, and Organifi.

By launching Cart Government Solutions as a wholly owned subsidiary, Cart.com is formalizing its presence in the public sector market. This move allows the parent company to isolate the high-security and regulatory requirements of government work from its standard commercial operations. The new entity, CGS, is positioned to compete for both continental United States (CONUS) and Outside Continental United States (OCONUS) missions, utilizing the parent company's existing logistics network while adhering to the specific audit and security demands required by federal agencies.

What this means

This announcement highlights a growing trend where high-growth commerce platforms are no longer content with the private sector alone. By creating a specialized subsidiary, Cart.com is challenging traditional government contractors who may lack the agile, software-first approach of modern e-commerce providers. The emphasis on cybersecurity-first operations and real-time visibility suggests that the public sector is under increasing pressure to modernize its procurement workflows to match the efficiency of the private market.

The move raises questions for the broader logistics and fintech sector regarding the cost of entry for government work. The requirement for 6 million square feet of secure, CGMP-compliant space and specialized leadership indicates that the barrier to entry remains high, despite the push for digital transformation. As agencies look to consolidate vendors, the ability to offer a unified stack of software, physical storage, and secure payment portals could force smaller, specialized contractors to seek partnerships or face displacement by integrated platforms.