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FedEx Ground
Type Subsidiary
Founded 1985 as RPS; rebranded as FedEx Ground in 2000
Headquarters Moon Township, Pennsylvania
Key people David F. Rebholz, President and CEO
Industry Transportation
Products Delivery
Revenue USD 7.05 billion (FY2009)
Employees More than 70,000 employees and independent contractors (June 2009)
Parent FedEx Corporation
Website http://www.fedex.com/

FedEx Ground is a shipping company headquartered in Moon Township, Pennsylvania, a suburb of Pittsburgh. Originally conceived as a lower cost competitor to UPS, Roadway Package System (RPS), was created to take advantage of new bar code, material handling and computer technologies. After beginning service on March 11, 1985, the company grew, expanding service from its initial coverage of the Mid-Atlantic states, so much so that it eventually became the largest subsidiary of its parent company, Akron-based Roadway Services. By 1996, RPS had achieved 100% coverage of the United States and Canada. In addition, Roadway Services had been reformed as a new holding company called Caliber System, Inc.

In 1997, Fred Smith, founder of FedEx, contacted Dan Sullivan, co-founder of RPS and now president of Caliber Systems, Inc. about merging the two companies. In 2000, FedEx, merged the Caliber System, Inc. operating companies into the FedEx organization with Robert's Express becoming FedEx Custom Critical and RPS becoming FedEx Ground. Viking Freight which initially operated under its original name was re-branded FedEx Freight in 2001.

FedEx Ground now provides 1-5 day delivery of small packages to all 50 states, plus Canada. Ground also delivered to Puerto Rico, but this service was discontinued in 2009. The subsidiary also offers a specialty service known as FedEx Home Delivery which serves all home addresses in the United States.

FedEx SmartPost

FedEx purchased the parcel consolidator Parcel Direct in September 2004 from Quad Graphics. This FedEx Ground subsidiary was re-branded as FedEx SmartPost in October 2004. FedEx SmartPost specializes in the consolidation and delivery of high volumes of low-weight, less time-sensitive business-to-consumer packages, using the US Postal Service[1] for final delivery to residences. FedEx SmartPost’s customers include e-tailers and catalog companies. Through its network of 22 distribution hubs, FedEx SmartPost provides delivery Monday through Saturday to all residential addresses in the U.S., including P.O. Boxes and military destinations.

The resulting service is one that is less expensive than FedEx Ground, but more expensive than regular mail, and ostensibly faster and more secure, since it allows the use of FedEx tracking resources for most of the package's journey. However, many customers (e.g., on Amazon.com forums) have complained about slow shipping even when compared with USPS parcel post.

FedEx Ground truck

External links

References

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