Al Root
Consumers have an insatiable desire for faster delivery. That has put pressure on countless retailers competing with Amazon.com. FedEx is creating a solution to make that task a little more manageable.
On Tuesday, FedEx announced the rollout of "FedEx SameDay Local," a service that will enable time-definite delivery windows across a national network.
"FedEx SameDay Local will provide our customers with a scaled solution to give the delivery options customers want, without adding complexity to their operations -- all backed by the confidence of working with FedEx," said FedEx senior vice president of digital portfolio, Jason Brenner, in a news release.
Same-day delivery can mean more sales for local businesses. Some 80% of customers surveyed want same-day shipping, and 25% of shoppers say they would abandon an online cart if same-day delivery wasn't available.
FedEx is bringing that option to businesses that might lack Amazon's scale. Helping is OneRail, a logistics software platform that FedEx has partnered with to match orders and drivers. SameDay Local also will offer real-time package tracking, predictive ETAs, and 24/7 support, among other features.
The service is another wrinkle in the ever-evolving relationship between Amazon and third-party shipping companies such as FedEx. The relationships don't always run smoothly. Currently, UPS is reducing its Amazon business, citing weak profitability. The U.S. Postal Service recently surprised Amazon with a last-mile delivery auction, prompting Amazon to bring some of that volume back into its own logistics network.
FedEx, for its part, walked away from its Amazon business in 2019. In 2025, the pair started working together again, particularly with third-party sellers who can use FedEx options after selling on Amazon.
Whoever delivers the packages, customers will soon see more same-day shipping options. Now the industry needs to prove it can be profitable.
Combined operating profits at UPS and FedEx peaked in 2022 at north of $20 billion. In 2025, they were under $15 billion. Amazon wasn't the reason; instead, inflation, tariffs, and weaker demand have weighed on the industry.
Investors expect some improvement in 2026. Coming into Tuesday trading, FedEx stock was up 23% year to date. Shares rose 1.2% on Tuesday, closing at $359.96, while the S&P 500 and Dow Jones Industrial Average dropped 0.4% and 0.2%, respectively.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 24, 2026 16:16 ET (20:16 GMT)
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