USPS Delivered 30% of FedEx Ground Shipments in FedEx’s Fiscal Fourth Quarter

For the twelfth consecutive quarter  FedEx has increased the proportion of shipments handled by its FedEx Ground subsidiary over the same quarter the previous year.    The continued rapid growth of FedEx Ground’s SmartPost service reflects the continuing increase in business-to-consumer shipments that FedEx transports for its customers.

The following chart illustrates the share of FedEx Ground shipments delivered by the Postal Service since 2009.  The increase in USPS share of deliveries reflects the faster market growth of FexEx SmartPost as compared to FedEx Ground’s delivery using other FedEx Ground or FedEx Home contractors. 

The fast growth rate of Fedex SmartPost reflects the need of B-2-C online retailers for a low cost delivery service that allows them to sell low-value and light weight products at prices sufficiently attractive to consumers to choose an on-line purchase.   As traditional  brick and mortar merchants continue to increase the share of their sales from stores to the web,  the USPS delivered share of FedEx’s ground delivery parcels should continue to grow.

Similar data on United Parcel Service’s use of the Postal Service to deliver light weight and low value parcels is not publicly available.   However, the Postal Service’s share of UPS deliveries is likely to be quite small as UPS has just begun serious marketing of its UPS SmartPost service.  

 

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3 Responses to “USPS Delivered 30% of FedEx Ground Shipments in FedEx’s Fiscal Fourth Quarter”

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  1. gary says:

    Thats great, to bad we dont charge them enough to make any money on the deal,hey maybe we can just cut postal employee wages so fed ex can make more money and we can lose more money,thats the kind of management we have running our business.

  2. readytoretire says:

    our boss said we get a dollar or two per parcel. this is just fedex, holiday season we also do the last mile deliveries for UPS. How much time are carriers given in the DOIS computers? O MINUTES!!!!! Yet they wonder why their budgets fail and people wonder why the P.O. is failing. Is there another company in the U.S. that when assessing an employees workload for the day, about 30% of that load is ignored and not input into computers. Wonder why there’s so much unauthorized OT????????

  3. Trib says:

    Isn’t this fraud. If your ordering from a catalog, you think your paying for Fedex superior delivery. But USPS drops it on your porch so Fedex doesn’t have to leave you a notice for re-delivery. Thanks postmaster “Doucheahoe”!

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