According to www.freightwaves.com, FedEx Corp. is entering the same-day e-commerce delivery market for the first time—partnering with OneRail to offer merchants a white-labeled, technology-enabled local delivery solution without operating its own last-mile fleet.
Strategic Shift: Outsourcing Last-Mile Execution
FedEx is retrenching from direct last-mile delivery for e-commerce sellers, citing unsustainable economics for a company built on global, end-to-end logistics. Instead, it will now provide same-day, local delivery options to merchants—including two-hour or end-of-day windows at checkout—while outsourcing physical execution to OneRail’s national network of over 1,000 delivery providers. This move allows FedEx to compete directly with Amazon, Walmart, DoorDash, Instacart, and UPS, which offers similar capabilities through its Roadie subsidiary and Delivery Solutions platform.
Technology & Scale
OneRail’s integrated technology system automatically matches orders to appropriate vehicles and drivers, enables live tracking, provides predictive estimated time of arrival (ETA), and delivers proof of delivery. The platform claims access to 12 million on-demand car and truck drivers, forming a scalable virtual carrier network. According to FreightWaves, the last leg of parcel delivery accounts for about 52% of total delivery costs due to persistent inefficiencies in driver-shipment matching.
Commercial & Brand Implications
The service is fully white-labeled, enabling FedEx merchants to maintain complete control of their customer relationship, data, and brand experience. As Bill Catania, CEO of OneRail, stated on LinkedIn:
“The solution is white-labeled, enabling FedEx merchants to deliver a fully branded experience to their customers, while maintaining complete control of their customer relationship, data, and brand.”
Jason Brenner, Senior Vice President, Digital Portfolio at FedEx, added:
“At FedEx, we’re supporting our customers in pushing the boundaries of their value proposition around speed and convenience. FedEx SameDay Local will provide our customers with a scaled solution to give the delivery options customers want, without adding complexity to their operations.”
Parcel consultant Nate Skiver, head of LPF Spend Management, noted that price competitiveness is critical: “FedEx needs to be competitive on price or retailers will have little incentive to make the change.” He identified potential early adopters including Best Buy, Walgreens, Dick’s Sporting Goods, GameStop, and PetSmart.
Consumer Demand & Market Context
Market data cited by FreightWaves shows that nearly half of shoppers are more likely to complete a purchase when same-day delivery is available (Invesp). This aligns with broader industry trends: UPS launched Roadie in 2017 and expanded its on-demand delivery infrastructure through Delivery Solutions; Amazon operates its own dense last-mile network and Fulfillment by Amazon (FBA) logistics; Walmart has invested heavily in Spark Driver and its in-store pickup-and-delivery ecosystem. FedEx’s entry follows its recent strategic moves—including raising earnings guidance, targeting 14% profit growth under its three-year plan, and expanding European capabilities via its InPost partnership.
Source: FreightWaves
Compiled from international media by the SCI.AI editorial team.
