Posts tagged with "Federal Express"

End of the road: FedEx to discontinue ground deliveries for Amazon

August 8, 2019

As Amazon continues to offer more products and faster shipments, most of its Delivery Service Partners are continuing to say “How high?” when the Seattle-based company asks them to jump.

But that’s not the case with Memphis-based Federal Express, which until recently had been among the company’s swiftest and most dependable contractors.

In fact, according to a report by The Wall Street Journal, on August 7, FedEx announced that it would not renew its contract at the end of this month to deliver Amazon packages through its ground network—essentially severing ties with one of the world’s biggest shippers.

The shipping and logistics company already had discontinued its U.S. air deliveries for the e-commerce giant in June, but had said at that time that it would continue to handle ground deliveries and international shipments. Now just the global business remains.

The moves are evidence of escalating tensions between the longtime partners as the e-commerce giant builds out its own delivery services, the Journal said—including leasing cargo planes, buying trucks, and funding local delivery drivers.

“This change is consistent with our strategy to focus on the broader e-commerce market, which the recent announcements related to our FedEx Ground network have us positioned extraordinarily well to do,” FedEx commented.

The decision has come at a time when Amazon already is planning its holiday deliveries. The e-commerce company will have to find a new way to handle millions of packages ahead of the critical holiday shopping season at the same time it continues looking to speed home deliveries.

The once-staid delivery business has been upended in recent years as consumers buy everything from toilet paper to trampolines online, causing a surge in e-commerce shipments. FedEx and rival United Parcel Service have invested billions of dollars to handle the increased volumes. FedEx recently said it would expand to seven-day home deliveries, The Wall Street Journal reported.

Although Amazon ships millions of packages a day, it spreads the orders among FedEx, UPS and the U.S. Postal Service, as well as its own growing delivery operations. FedEx has said Amazon represented 1.3% of FedEx’s total revenue in 2018, or less than $1 billion.

Research contact: @FedEx

Walgreens joins with FedEx to offer next-day prescription home delivery

December 7, 2018

When an incapacitating or communicable illness hits home, getting dressed and driving to the drug store suddenly becomes an Olympic-size challenge—and one that could spread your germs to the other customers at the pharmacy. Now, there may no longer be the need to drag yourself out the door.

On December 6, Walgreens and FedEx jointly announced the nationwide launch of next-dayiprescription delivery service—bringing together Walgreens’ extensive network of neighborhood pharmacy locations with FedEx’s air-and-ground delivery fleet in order to enhance convenience for customers.

In doing so, Walgreens claimed it will become “the fastest choice for next-day prescription delivery across the nation.”

Customers enrolled in text alerts will receive text notification when qualifying prescriptions are ready. Following a simple process on their mobile devices, they then can have their qualifying prescriptions delivered right to their homes as early as the next day (for a $4.99 fee nationwide). In addition, same-day delivery now is available in select markets—and will be expanded in 2019.

“Walgreens is driven by a desire to make healthcare accessible to all across the thousands of communities we serve. Next-day prescription home delivery is another convenience-driver, alongside our industry-leading number of extended hours pharmaciesiii and one of the most downloaded digital apps in the category, designed to put care in the hands of our patients,” said Richard Ashworth, Walgreens president of operations. “This expansion of our alliance with FedEx illustrates our commitment to making filling prescriptions as fast and easy as possible.”

Walgreens ExpressT allows patients to preview their cost, prepay for eligible prescriptions, and choose between home delivery or express pickup in store. Patients who prefer collecting prescriptions at their local Walgreens can enter a dedicated Walgreens Express pickup checkout line to receive their prescriptions.

“FedEx and Walgreens are empowering consumers to choose when and where they receive their orders,” said Randy Scarborough, vice president of Retail Marketing, FedEx Services. “Just as FedEx package pick-up and drop-off services at Walgreens locations provide customers with much-needed convenience, the ability to ship prescription medication directly from Walgreens to their homes offers valuable flexibility to best meet individual needs and schedules.”

Research contact: morry.smulevitz@walgreens.com