FedEx is expanding same-day delivery options for its retail customers, releasing a new solution enabling them to offer two-hour or end-of-day delivery at checkout.

In partnership with last-mile delivery company OneRail, the logistics giant has launched FedEx SameDay Local, which connects customers to a national network of more than 1,000 delivery providers.

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With SameDay Local, customers can choose more precise “time-definite” delivery windows, including the two-hour and end-of-day service options.

When a customer completes an order online with a participating retailer, SameDay Local automatically matches them to the appropriate vehicle and driver, assigns the route and provides them live near-real-time tracking updates from pickup to delivery. OneRail’s last-mile orchestration platform provides integration through API connections and offer full-platform support so retailers stay ahead of potential delivery delays or disruptions.

The move comes as FedEx aims to focus more on high-margin verticals as a way to bolster profitability, namely through high-value B2B and specialized B2C segments. Entering a third-party partnership takes some of the heat off the delivery giant, allowing the company to lower unit costs while letting a wider delivery network do the heavy lifting.

“Everthing FedEx does has to be done at scale,” said Jason Brenner, senior vice president of digital portfolio. “The best way to go to market here is to leverage a partnership that unlocks nationwide coverage with tight SLAs at competitive pricing.”

The push also comes at a time when retailers appear to be in a same-day delivery arms race of sorts, with merchants turning to more third-party last-mile delivery services to get products at the consumer’s doorstep faster.

The launch follows Amazon’s recent rollout of one-hour and three-hour delivery services across the U.S. One-hour delivery for the e-commerce giant is available in hundreds of locations, while three-hour delivery is offered across over 2,000 locations.

More than 90,000 products are eligible for those services, which come at separate price tags for Prime members and non-Prime customers.

Walmart has also been touting its own sub-one-hour delivery capabilities, which new CEO John Furner has called the retail giant’s fastest growing delivery channel.

Brenner pointed out that across all three enterprises, there is a need to fulfill customer desires for optionality above all else, even as same-day delivery becomes more commonplace among delivery providers.

“It’s not speed at all costs. If you had a sweater that you wanted to get free delivery, and it came next Friday, that’s going to likely be fine for you,” Brenner told Sourcing Journal. “If you wanted rock salt, because it’s snowing and the bags are 50 pounds, and you want it delivered when you’re home, you really want it between 4 and 6 p.m. today. Providing those customers with optionality and control is the trend you’re going to see.”

The solution is designed to work with retailers of all sizes as long as the merchants are looking to leverage ship-from-store either from their physical stores or micro-fulfillment centers.

According to Brenner, FedEx is proactively and reactively taking inbound calls from customers on the Fortune 50, all the way down to retailers with two to five stores as well.

“We have been feeding this with customers for the last few weeks, and the early demand is exciting and really strong,” Brenner said.

With time sensitivity being a critical component of the offering, Brenner noted that sellers of “big and bulky” products were among those that would benefit from the new offering, including large electronics companies, home goods companies and furniture companies.

“When you’re scheduling a delivery for a couch or a 70-inch TV, you want to be home when that thing is being delivered,” said Brenner. “Same for medicine from a pharmacy or convenience store, where you really need it soon. I think you’d be surprised what people have time sensitivity to.”

As part of the offering, OneRail will provide retailers with a “rate card,” which enables companies to determine their own same-day shipping prices and select the best fit couriers depending on their own value propositions. The rate card is designed to eliminate the complexity of managing separate carrier pricing structures with a single commercial framework.

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