FedEx, Amazon up race for faster delivery
Just days after Amazon rolled out new same-day delivery options, FedEx says it’s doing the same — partnering with last-mile delivery company OneRail to expand its speed.
FedEx pushes into same-day delivery
FedEx says customers will now have the option to receive purchases by the end of the day.
“Our value prop is about speed, reliability and visibility, and we’re always trying to push the envelope on that value prop,“ Jason Brenner, FedEx senior vice president, told CNBC.
Through its partnership with OneRail, FedEx says retailers will also be able to offer two-hour delivery in some cases.
OneRail partnership expands reach
One-Rail is a last-mile logistics company that uses AI to manage delivery, routing, and tracking. The company says it has about 1,000 drivers and completes roughly 80,000 deliveries of 30 minutes or less each day.
FedEx says tapping into that network allows retailers to offer faster delivery without overhauling their existing infrastructure.
“It’s very complex to manage if you stitch it together yourself,” Brenner said. “It’s very costly to manage, and it’s very complex and costly to scale.”
Cost and control for retailers
Under the partnership, OneRail will provide retailers with a rate card, leaving it up to each business to decide what to charge customers for same-day service.
“We’re excited to partner with FedEx,” OneRail CEO Bill Catania told CNBC. “It unlocks more capabilities for the retailer, which really lets them own their customer and their data.”
Amazon raises the bar
Amazon is also accelerating delivery speeds.
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Amazon says its new 1-hour or 3-hour delivery options will be available for more than 90,000 items.
Last week, the company announced one-hour and three-hour delivery options in several U.S. cities, including Los Angeles, Chicago, Washington, D.C., and Des Moines, Iowa.
Amazon Prime members pay $9.99 for one-hour delivery or $4.99 for three-hour service. Non-members pay $19.99 and $14.99, respectively.
“Our customers are busier than ever and are looking for new ways to save time,” said Udit Madan, Amazon’s senior vice president of Worldwide Operations. “We saw an opportunity to use our delivery network to make their lives easier while adding more value for Prime members.”
Amazon says the faster options will be fulfilled through its existing warehouse network.
Retailers race to keep up
The push reflects a broader shift across the industry, with Walmart and Target also expanding express delivery options to compete on speed and convenience.
Ella Rae Greene, Editor In Chief
