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FedEx Launches Home Delivery Service

March 14, 2000

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FedEx Corp. has launched a new home delivery service designed to compete with rival UPS in the burgeoning e-commerce-based business.

Key features of FedEx Home Delivery include a money-back guarantee and appointment and evening delivery.
FedEx says the ground delivery service in the residential market is expected to increase 119% by 2003, according to data from the National Research Federation. Much of that growth can be attributed to an expected increase in online purchases, which Forrester Research Inc. projects will grow from $38 billion this year to $184 billion by 2004.
Daniel J. Sullivan, president and chief executive officer of FedEx Ground said the new service leverages the strength of the FedEx Ground network for package pickup and fully-automated processing and offers residential customers a better delivery experience focused on their needs.
FedEx says consumers today expect more from business-to-consumer retailers -- from the moment they log on to a web site until the purchase arrives at their door. In a recent CARAVAN Research survey of 1,000 consumers, 70 percent of those polled said their satisfaction with an online or catalog retailer is directly influenced by their satisfaction with the delivery experience. In that same study, more than 44 percent of those polled said that premium service options such as appointment and evening delivery would increase their likelihood of purchasing more product from online and catalog retailers.
FedEx Home Delivery begins making deliveries to residences in the largest U.S. metropolitan areas which account for 50% of the U.S. population.
Sixty-seven dedicated delivery terminals have opened for business within the past week to support the launch, and FedEx Ground plans to add more dedicated Home Delivery facilities within the next year as part of an aggressive plan to rapidly expand its residential service area. Those terminals are located in Fort Lauderdale, Harrisburg, Hartford, Houston, Indianapolis, Kansas City, Los Angeles, Memphis, Miami, Milwaukee, New Haven, New York, Newark, Orlando, Philadelphia, Phoenix, Pittsburgh, Portland, Providence, Rockford, Sacramento, San Diego, San Francisco, Seattle, St. Louis, St. Paul, St. Petersburg, Tampa, Toledo, Trenton, and Washington, D.C.

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