December 26, 2000, 9:55 AM

FedEx home grows e-delivery service

Don Davis

Editor in Chief

Delivery giant Federal Express is making residential deliveries easier on Internet consumers.

In a series of restructuring moves, FedEx has changed its corporate name to FedEx Express and has rolled out a new delivery service aimed at Internet shoppers, allowing them to schedule delivery times for goods purchased online.

To gear up for the new service, FedEx will spend $100 million to transfer home deliveries to business-to-business subsidiary RPS, which it renamed FedEx Ground. The changes are among four major realignments FedEx is making to compete with United Parcel Service and others. By next month, FedEx Ground expects to to cover 50% of the country, with 67 home delivery facilities in 38 markets. It intends to cover 98% of the U.S. in four years.

Retailers such as L.L. Bean are hailing the move. The Freeport, Maine-based retailer has 90% of its packages delivered by FedEx. “It was the logical step,” says Bob Olive, senior manager of logisitics for L.L. Bean. “The company is a strong brand and a strong influence on consumers.”

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