FedEx (FDX) is launching a new same-day delivery service as it moves to offer quicker shipping times to its customers.
Management at FedEx sad that it is partnering with last-mile delivery company OneRail to facilitate the same-day shipping service in the U.S.
The move to provide dame-say delivery comes as FedEx faces growing competition from rivals such as Amazon (AMZN) and Walmart (WMT).
FedEx is the latest company to join retailers in the race to offer the quickest delivery and most convenience for consumers and businesses.
Amazon announced earlier in March that it is rolling out delivery windows of just one-to-three hours for its customers.
Retailers such as Walmart and Target (TGT) now provide express delivery options for their customers that promise to get packages to homes and businesses on the same day.
OneRail, which is a last-mile delivery software company, uses artificial intelligence (A.I.) to optimize the delivery process, as well as rout and track retailers’ deliveries.
OneRail claims to cover nearly 99% of the U.S. and has a network of more than 1,000 delivery drivers that provide 80,000 30-minute or less deliveries per day.
With the new partnership, FedEx and OneRail will enable retailers to offer same-day shipping to their customers.
Going forward, FedEx customers will be able to choose two-hour and end-of-day delivery service, in addition to near real-time tracking of parcels and packages.
The move by FedEx to offer same-day delivery comes after Amazon started offering shorter delivery windows in some parts of the U.S. to meet growing customer demands.
More than 90,000 items sold by Amazon qualify for the company’s new one-to-three-hour delivery program, including pantry staples, cleaning supplies, and clothing items.
FDX stock has risen 47% in the last 12 months to trade at $355.78 U.S. per share.
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