Formation of FedEx Ground

FedEx Ground gave FedEx a low-cost truck network to compete with UPS for ground parcels, ending UPS's dominance of that market. RPS, founded in 1985, had built its network on independent contractors who owned their trucks and routes, a model FedEx Ground kept and later shifted to contracted service providers. FedEx also launched FedEx Home Delivery in 2000 for residential packages. Today FedEx Ground and UPS Ground are the two national ground options most brands rate-shop between, and their zones, surcharges and annual general rate increases make up a large part of fulfillment cost.

• Rate ShoppingPicking the cheapest carrier for each package
• General Rate IncreaseGRIA carrier's yearly list-price increase
• Residential SurchargeCarrier fee for delivering to a home

• Fred Smith1944–2025 · Founder of FedEx

• UPS Coverage of All 48 Contiguous States1975 · UPS can deliver to every address in the lower 48
• 1997 UPS Teamsters Strike1997 · 185,000 UPS workers walk out for 15 days
• UPS and FedEx Ground DIM Pricing2015 · Ground carriers bill every package by DIM weight

1. FedEx Ground (Wikipedia) en.wikipedia.org
2. Why RPS is the most successful transportation startup ever (FreightWaves) freightwaves.com
3. FedEx history (FedEx) fedex.com