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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. Khurram shahzad Khurram Khan

    Please help me sir FedEx manager my package parcel delivery reacive to pay fee ok
    Mr khurram shahzad
    Mr khurram Khan
    Country of Pakistan Punjab
    City Gujranwala
    Village bujjmal
    Post code 52340
    Zip code 3410158041265
    Mobile phone number +923464674502

  2. Jerry Roane

    Coming soon high speed HEFF guideway freight to the lower 48 states. This door to door self-driving electric vehicle will more than impress. All these companies will make more money with better, faster service to the actual door.

  3. Diana Dawn

    I guess that would explain why FedEx packages are being stuffed into U.S. mailboxes or lying in ditches and driveways instead of being properly, and legally, delivered to the residents homes.

    Besides the U S. Mail, United States Postal Service Mail Carriers have been carrying, not only FedEx slackers, but UPS and DHL delivery personnel as well, and their last mile deliveries on their weary backs, (right along with Amazon) for the last several years, and without compensation.

    Based on that fact, there’s no way that FedEx is going to be able to deliver the last mile efficiently. But hey, they’re certainly welcome to try.

    As is the norm, I did notice some prior comments posted, expressing great dissatisfaction with the quality of their (free) mail delivery service and many of them, probably, have very good reasons for that opinion.

    However, an abundance of criticism seems to always pair quite nicely with inexperience. But, wouldn’t personal knowledge regarding employment conditions, and duties, only be obtained with actual on-the-job experience?

    Nevertheless, everyone’s entitled to their opinion. As the postal service is always hiring, I would encourage you to apply online.

    Most new-hires haven’t got a clue what this job entails. Many quit during their 1st week, and the majority of them don’t make their 90 days.

    But maybe, what this organization needs are the Chads, the “Karens” and LOTS of them. People who could come into this career PRE-QUALIFIED, already knowing EVERYTHING! YES!

    Chad and Karen, we welcome you with open arms. Just think of the savings on training ALONE! Why, USPS could be out of the red in NO TIME!

    Welcome to the postal service my friend, where sometimes, the only thing that can get you through your day is an unusually sarcastic sense humour.

    📬 Postal customer service should always be number one because without our customers, there would be no Postal Service.📪

    1. Tcs53

      Sounds like you are a recruiter for USPS. In reality postal service stinks. I trust FedEx and UPS over the civil service employees hired by the government. I live in a large suburb of Chicago, only a 1/2 mile from the post office and if our regular mail carrier is taking some time off we don’t get mail or packages. Sometimes we won’t get mail for 3 days in a row. I’ve had bills ripped in half with a letter saying “sorry, hope this didn’t cause an inconvenience“

  4. Yv ne

    Omgosh, you all are not drivers are you? No your not. Deliveries were curtailed and YPU blamed it all on USPS. No honest ownership of the problem to me, you are a witness Worthless carrier. Sure, some might believe it, those who know better, do not. Even privately, you will never deliver my packages to my military, ever. Just like a dog in heat, your just not trustworthy and You blow it off . Your just there for the money hungry. My dead dog is better than your word.
    better than that. hump and money

  5. Fred

    FedEx continues to negotiate contracts with
    its independent service providers/contractors (ie: less for more) that has enabled them to bring these ecoparcels back into their own delivery system and still be profitable. As long as service providers/contractors are willfully accepting slimmer profits at higher risks and costs, it is win_win for FedEx.

  6. Judy Knight

    This would explain the lack of urgency or customer service that has already brought major accounts directly back to the most trusted service “USPS”. The last mile at Fed-Ex consists of your parcels being thrown in the woods along your property lines. Buyer Beware in rural area’s.

  7. Jim Fredkove

    Neither FedEx or United Parcel Service can make money delivering non packages to EVERY address in the fifty states. I doubt if they can even make money delivering packages to many rural areas.

    1. Joe

      Fedex ground is a joke they hire subcontractors to deliver thier packages to rural areas and the contractor out of Eagle River Wi refuses to deliver packages if the road isn’t paved..UPS will always deliver to these areas year round.. Fedex subcontractors pick and choose where they will deliver to..even if they are paid to deliver to the physical address…they will drop off at the nearest post office…what a joke… especially when they are getting paid for the whole freight cost to the said physical address..worst carrier ever

  8. Bill Hennager

    The Post Office is a joke for Last mile delivery. FedEx abandoned them because the service sucked really bad. There unreliable and I wish Amazon abandons them also. They also falsify delivery scans

    1. joseph

      Talk about falsifying tracking. …fedex and ups are the king of “projected scans that its were your package is suppose to be!” They are private and can do what they want and usps is held up to Congress when they do it but not the private company’s.

Comments are closed.

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.