FedEx to Launch Service for Web Shoppers
In a series of restructuring moves,
Federal Express revealed plans to roll out a new delivery service aimed at Internet shoppers.
The service will allow consumers to schedule delivery times for goods purchased online.
"This was specifically designed for the e-commerce market," says Fred Smith, FedEx chairman, president and CEO.
To gear up for the new service, FedEx will spend $100 million to transfer all home deliveries to RPS, a subsidary now focused on business-to-business clients. RPS will be renamed FedEx Ground.
The changes at RPS, announced during a conference call with analysts and reporters on Wednesday morning, are among four major reallignments the global delivery service is making to compete with UPS and offer shipping companies.The company's corporate name will become FedEx Express, while Roberts Express will be renamed FedEx Custom Critical and FDX Logistics will become FedEx Global Logistics.
RPS completed a pilot test of scheduled home deliveries in Pittsburgh over the past six months, and company officals say the project succeeded. By mid-March, FedEx Ground expects to cover 50% of the country by operating 67 home delivery facilities in 38 markets. It plans to expand its service to reach 98% of the nation over four years.
FedEx officials say they have briefed Internet retailers such as Tupperware and Day-Timers Inc.about their plans.
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