In the age of e-commerce, FedEx wants to tackle the most expensive part of delivery

Patrick Fitzgerald, senior VP of Integrated Marketing and Communications with FedEx. “Last mile — that’s the most expensive part of the delivery. Driving down our cost to serve — and increasing efficiency for — our customers is a key consideration.”

So why is last-mile residential delivery so expensive? If a driver goes to a house and drops off one package, then drives a few more miles and drops off another — that’s an expensive feat. And in the age of an e-commerce boom, the residential piece will only continue to grow.

Fitzgerald said investment in technology, FedEx Ground’s recent move to seven-day delivery, and the integration of previously contracted U.S. Postal Service packages back into the Ground network, are a few of the things that make this new initiative possible.