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FedEx completes shift of former Postal Service business, rebrands service

New service called FedEx Ground Economy

The last mile is under new management (Photo: Jim Allen/FreightWaves)

FedEx Corp. (NYSE:FDX) said Wednesday that it has completed the integration of its last-mile delivery operations formerly handled by the U.S. Postal Service, and has rebranded the service to FedEx Ground Economy from FedEx SmartPost.

Memphis, Tennessee-based FedEx has said for several years that it planned to divert its postal business into its own network. Initially, the transition was to be completed by the end of 2020. However, the impact of the COVID-19 pandemic on parcel deliveries pushed back the timetable.

Historically, FedEx would deliver millions of parcels deep into the postal infrastructure for the Postal Service to provide last-mile delivery to residences. FedEx changed its strategy in an effort to build package density in its business-to-consumer (B2C) ground delivery network and set the stage for seven-day-a-week deliveries, which it now offers.

At its peak, FedEx tendered about 3 million parcels per day to the Postal Service for last-mile deliveries.

The FedEx Economy contract-only service offers deliveries within two to seven business days depending on the length of haul to the destination.


  1. joseph

    FedEx and Ups are the kings of false tracking info. They create tracking by doing computer generated tracking by were your package is suppose to be in the system. It’s called logistics! When your package doesn’t show up they have no idea were it is if its missorted. Do you really think they scan millions of package by hand everyday… . When usps does this though theres a congressman up there azz though. When a private company does it …nothing. Smart post was a big money loser for usps. That’s why fedex wanted nothing to do with it. Wait til they see the labor cost of this move.

    1. Franklin

      During peak season at the post office, trailers full of packages were delayed for not days, not weeks but months. The I don’t care attitude of postal employees that are sitting on mail at Christmas for that length of time need to square away their biz before criticizing others. FedEX a much smaller company than USPS will expand, organize and ship, and customers will receive packages in a timely fashion. All people appreciate the work of the USPS when they are doing their job. Spend less time playing mind games and more time plucking the plank out your own eye! USPS has LOTS of problems ………. OHHH YEAHHH!

  2. joseph

    Glad to see that fedex will finally be responsible for there own packages and not paying nothing for usps to do the heavy work and deliver there own business and stop using usps as there slaves. They should also stop hauling usps packages for them because all these recent problems usps has had can be traced right to fedex who has been putting usps packages to the back of the line and delaying them because therein a contract with usps so what better way to knock your competition out of business.

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Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.