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FedEx Express Will Use Ground Service for Some Deliveries, Citing E-Commerce Demand

Starting next month, FedEx Express will contract with FedEx Ground for the transport and delivery of select day-definite, residential Express shipments in an effort to increase the efficiency and lower the cost of residential deliveries.

The company said the move is an answer to the “explosive rate” of growth for e-commerce deliveries. FedEx Express packages will be selected for FedEx Ground if they are residential deliveries for which it can meet the service commitment.

The company will begin rolling out this new delivery plan in Greensboro, N.C., and will include other markets in phases throughout the remainder of the year.

“This move makes residential deliveries more efficient by putting the right package in the right network at the right cost to serve our customers,” Raj Subramaniam, president and chief operating officer of FedEx Corp., said. “We continue to flex our network to stay ahead of e-commerce growth and that includes adjustments to better handle the demand for residential deliveries while lowering our cost to serve…This change leverages the strengths and investments in the FedEx Ground network, making it the network of choice for residential packages fueled by e-commerce.”

By optimizing last-mile residential deliveries, FedEx will also help improve safety and sustainability by reducing the number of delivery vehicles in neighborhoods, the company noted. This move also enables FedEx to continue to explore and invest in new last-mile delivery technology and functionality.

Last year, FedEx Ground launched Sunday residential delivery for most of the U.S. population. FedEx Freight Direct has expanded to more than 80 percent of the contiguous U.S. population. The new e-commerce solution offers delivery of bulky items by FedEx Freight team members into residences and businesses.

The company’s retail network now includes more than 14,000 FedEx hold locations, including pick-up and drop-off services at more than 2,100 FedEx Office locations and at retailers such as Walgreens, Albertsons, Kroger and Dollar General.

With FedEx Delivery Manager, package recipients can customize home deliveries to fit their schedules by requesting that their shipment be redirected to a different location, including a FedEx Hold location, and leaving instructions for the driver.