FedEx to Accelerate Expansion of FedEx Home Delivery Network

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FedEx Corp., Memphis, TN, will accelerate the expansion of its FedEx Home Delivery network to reach roughly 80 percent of the U.S. population by fall 2001, the company said yesterday.

The company also plans to achieve full U.S. coverage by September 2002 -- more than one year earlier than originally scheduled.

FedEx Home Delivery is a FedEx Ground service for business-to-consumer shippers and their residential customers. It offers the industry's first money-back guarantee for residential ground delivery.

In March, FedEx Home Delivery began making deliveries to residences in the largest U.S. metropolitan areas, which account for 50 percent of the U.S. population. Currently, 67 dedicated delivery facilities serve these customers.

However, through a two-phase expansion plan -- which will begin in July -- FedEx Ground will open approximately 150 new FedEx Home Delivery terminals to increase the network's service coverage.

In addition, by March 2001, FedEx Home Delivery will increase its reach to 70 percent of the U.S. population. Phase two will enable FedEx to serve 80 percent of the U.S. population by September 2001.

Among other features, the service offers shippers an expanded delivery window, between 9 a.m. and 8 p.m., Tuesday through Saturday; guaranteed select day delivery, which enables recipients to choose the day of the week -- including Saturday -- for package delivery; and guaranteed appointment delivery, which confirms delivery within one hour of a time specified by the recipient when contacted by the local FedEx Home Delivery terminal.

"Business-to-consumer shippers and their customers have responded enthusiastically to the innovative service options that FedEx Home Delivery brings to the residential market," said Daniel J. Sullivan, president/CEO, FedEx Ground. "Based on the response to our unmatched residential ground solutions, we are rolling out FedEx Home Delivery at a more aggressive rate."

However, some industry insiders said this service is not profitable for the company. They said FedEx ships 17,000 to 18,000 packages a night -- out of its 3 million daily package volume -- through FedEx Home Delivery.

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