(Corrects executive's designation in paragraph 4.)
By Nivedita Bhattacharjee
April 23 FedEx Corp launched a new
service to let customers select from a range of options to
schedule dates, locations and times of delivery, catching up to
rival UPS, which offered its "UPS My Choice" service
more than a year ago.
Residential shoppers, who are a growing part of the
company's business thanks to the rise of online purchases, can
receive notification of FedEx Express and FedEx Ground packages,
and track and manage deliveries without a tracking number or
UPS launched its service in September 2011 to help enhance
first-time delivery with consumers getting alerts and details on
the specific timeframe for a shipment.
Raj Subramaniam, executive vice president of marketing and
communications at FedEx Services, told Reuters the growth in
ecommerce made it the right time for the company to launch FedEx
Delivery Manager through its FedEx Services subsidiary.
"In the second quarter, overall online sales (in the US)
grew 15 percent while GDP was somewhat between 1-2 percent," he
said, adding that it would put FedEx at a competitive advantage
But at least two analysts said FedEx was late in offering
the service and that it would not change FedEx's game by much.
"I think offering services at parity is normal for both
companies," said Morningstar analyst Keith Schoonmaker, who
added that his valuations on FedEx would not change.
The analysts said FedEx was most likely late in offering the
new service because it was testing it to work out any possible
FedEx Delivery Manager is available through multiple digital
platforms including a free mobile app, letting customers request
alerts via email, SMS text or phone - providing advance
notifications about packages being shipped to their homes.
The service also lets customers request options without
being locked into a premium-priced membership.
(Reporting by Nivedita Bhattacharjee in Chicago; Editing by