FedEx adds next-day shipping service to rival Amazon Prime

FedEx has introduced a new next-day shipping service in the US with cut-off times as late as 2am the night before.

The Extra Hours service offers next-day delivery in some metro areas and two-day delivery for all other mainland US destinations.

It bypasses the need for FedEx to stop at a retailer’s regional distribution centre by using the retailer's network of “big box” stores instead, first checking to see if the required product is in stock. As such, fulfilment becomes local, allowing FedEx to cut down on delivery times.

The service may put another dint in Amazon Prime, which was previously unique in offering last-minute two-day and next-day shipping thanks to its massive fulfilment centres across the country.

“By providing later pickup times and utilizing next-day local delivery, retailers can fulfill and deliver online purchases to their shoppers faster than the competition,” said FedEx.

Fred Smith, CEO of FedEx, has previously downplayed the idea of Amazon as a competitor and noted that the retail company continues to be a big FedEx customer.

Source: Business Insider