FedEx Freight, the less-than-truckload (LTL) unit of FedEx Corp. (NYSE: FDX), said October 14 that it has expanded its last-mile delivery service for heavier weighted consignments. The service had been in pilot form until now.
The unit’s “basic” delivery product, which brings items to the consignee’s door and no further, is now available nationwide. The “standard” product, wherein drivers bring the shipment into the first point of entry of a residence, and the “premium” product, which involves carrying the shipment to the room of choice, unboxing the product and performing light assembly if necessary, are available in 80% of the territory comprising the lower 48 states, the unit said.
The FedEx unit had operated in 18 markets prior to the announcement, a company spokesperson said. The pilot program began in Dallas late last year. It expanded in early 2019 to four more markets. The expansion continued throughout the year.
The unit will use FedEx-branded vehicles and company drivers, according to the spokesperson. It is unclear what type of vehicles will be deployed for the operation.
The market for larger items ordered online is expected to approach $10 billion by the end of 2019, according to projections from consultancy ShipMatrix. Demand continues to grow as more retailers and manufacturers throw open most, if not all, of their inventory to e-commerce. The goods that FedEx Freight handles are typically not designed to run through the conveyor networks designed for parcels weighing up to 70 pounds.