FedEx Challenges Amazon With New Two-Hour Delivery Service

FedEx Deploys 1,000 Providers for Two-Hour Delivery

On March 24, 2026, FedEx launched FedEx SameDay® Local, a significant new service designed to compete directly in the rapid delivery market. The offering enables retailers to provide customers with options for two-hour or end-of-day delivery directly at checkout. This strategic move is executed through a collaboration with OneRail, a last-mile logistics company that provides an intelligent orchestration platform. The partnership gives FedEx customers access to a national network of more than 1,000 delivery providers.

The service integrates into retailer websites via API and uses AI-driven rules to automatically match orders with the optimal vehicle and driver for dispatch. Key features include near real-time tracking, predictive arrival times, and the ability to handle large or specialized deliveries, providing a scaled solution for businesses to meet consumer expectations for speed and convenience without adding operational complexity.

New Service Targets Market Where 80% of Shoppers Demand Same-Day Option

FedEx's introduction of SameDay® Local is a direct countermove to Amazon's recent push into one-to-three-hour delivery windows. The initiative is grounded in clear market data indicating a powerful consumer preference for speed. Recent research shows that 80% of shoppers want a same-day delivery option, and 96% define "fast delivery" as arriving on the same day. Furthermore, nearly half of all shoppers state they are more likely to complete a purchase when a same-day option is offered.

By providing this service, FedEx aims to help its retail customers reduce cart abandonment and build loyalty. The offering directly addresses a gap identified in a recent FedEx report, which found that while 36% of consumers prioritize reliable delivery windows, only a small fraction of organizations can proactively manage shipment issues. This new platform provides the visibility and control necessary to close that gap and challenge rivals in the last-mile delivery race.