FedEx May End Home Deliveries
Analysts who follow Federal Express, Memphis, Tenn., say that the next-day package service may eliminate residential deliveries, leaving them to its business-to-business subsidiary, RPS.
FedEx is one of few next-day delivery options for Internet retailers, and the change could cause a scramble for alternatives.
The shipper is scheduled to meet with analysts on Wednesday in New York to discuss business changes. Some analysts speculate that FedEx will announce a closer integration with RPS.
Art Hatfield, an analyst with Morgan Keegan, says the company likely will turn over residential deliveries to RPS, which is based in Pittsburgh. According to Hatfield, RPS already has been conducting a residential pilot program in Pittsburgh.
"They want RPS to be a mirror image of UPS," adds Daniel Gelbtuch, an analyst with Value Line. "It's a distinct possibility, and it wouldn't surprise me."
Officials from FedEx were not available for comment.
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