- FedEx is piloting a service for the delivery of large and bulky products to homes and businesses, the company confirmed to Supply Chain Dive in an email. Bloomberg first reported the news.
- The white glove service, dubbed FedEx Freight Direct, "is in the beginning stages" and is being tested in five markets, the company said. FedEx did not specify which markets were participating in the tests.
- In the past, FedEx would deliver bulky items through its freight operations, but not to a residential location, Bloomberg reports.
FedEx is not alone in its bullish expectations for the last-mile delivery of bulky goods. Just last week, J.B. Hunt acquired Cory 1st Choice Home Delivery — a provider of transportation solutions for "big and bulky" products — for $100 million. Last year, Ryder purchased MXD group for $120 million, and in so doing reportedly became the second largest last-mile delivery provider of bulky goods.
In the past 18 months, the likes of XPO Logistics, Home Depot and Amazon have also made investments to better serve the bulky goods delivery market. UPS was also rumored to be considering entering the market as recently as last May.
Carriers have not traditionally offered e-commerce deliveries for large and bulky items in their regular services, given the goods' size and weight. Instead, customers buying washing machines, sofas and other heavy goods would have to contract a provider specializing in the transport and assembly of these goods.
But as e-commerce sales in those retail segments grow, carriers with the equipment to transport the goods have decided to test out the potential for a new revenue stream. "Demand for these types of delivery services has grown in recent years and we expect that trend to continue," FedEx said in an email explaining the pilot projects.