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FedEx unit expands final-mile delivery network


FedEx Freight, the less-than-truckload (LTL) unit of FedEx Corp. (NYSE: FDX) has expanded its final-mile delivery operation, "FedEx Freight Direct," to 19 U.S. markets.

The unit, which earlier in 2019 said it would pilot final-mile deliveries earlier in five U.S. cities, will expand its coverage area in time for the holiday delivery season. 

The program is available as a "standard" service – drivers bring the shipment into the first point of entry; and as a "premium" service, which involves carrying the shipment to the room of choice and unboxing the goods. The service is available at residential and business locations.

Each pilot market was expected to work with a mix of company equipment and third-party vendors to determine what would be the best fit, according to an internal memo reviewed in late 2018 by FreightWaves. It is unclear what truck type will be used as the unit expands its footprint.

Each market handled its respective pilots in its own way, and none of the variations were expected to resemble the look of a nationwide rollout if one occurs, company executives said in the memo. The executives also emphasized that the expansion will take time to form. "We are committed to getting this right," said Ken Frith, vice president of the unit's southwest region, at the time.


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