FedEx expands last-mile network with $129.8mn purchase of P2P Mailing
FedEx has acquired P2P Mailing Limited, a provider of worldwide e-commerce transportation solutions, for $129.8mn, significantly strengthening its last-mile network.
In a statement, FedEx said P2P’s capabilities complement and expand the FedEx portfolio of offerings important to the rapidly growing global e-commerce marketplace.
P2P provides customers with last-mile delivery options, leveraging its relationships with private, postal, retail and clearance providers in over 200 countries. Its technology and processes provide plug-and-play options with carrier networks and customer systems.
The firm is headquartered in Laindon, United Kingdom and will operate as a subsidiary of FedEx Cross Border within the FedEx Trade Networks operating company.
“Global e-commerce continues to grow at a rapid pace, and more and more merchants, marketplaces, e-commerce and social platforms are looking for innovative, cost-effective ways to get merchandise from distribution points in one country to customers in another,” said Carl W. Asmus, president and CEO, FedEx Cross Border.
“By adding P2P to the FedEx portfolio, we will be able to effectively serve even more elements of the e-commerce market.”
Richard W. Smith, president and CEO, FedEx Trade Networks, Inc, said: “This acquisition is a further step in achieving the global mission of the FedEx Trade Networks group to provide specialized solutions to customers.”
“We are pleased to welcome the P2P team members into the FedEx family of companies and look forward to combining the talents of both teams to contribute to our continued success.”
In separate news, FedEx has jumped on the Tesla bandwagon, reserving 20 of the company’s Tesla Semi trucks. The fully-electric trucks, which are scheduled to begin production in 2019, will be operated by FedEx Freight, its less-than-truckload unit.
“FedEx has a long history of innovation and incorporating sustainability efforts throughout its global network,” said FedEx Freight president and CEO Mike Ducker. “Our investment in these trucks is part of our commitment to improving road safety while also reducing our environmental impact.”
Tesla says its new big rig will deliver a far better experience for truck drivers, while increasing safety and significantly reducing the cost of cargo transport.