FedEx Acquires UK-Based Transportation Solutions Provider, Orders 20 Tesla Semi Trucks

FedEx has acquired P2P Mailing Limited, an e-Commerce transportation solutions provider, from The Delivery Group for approximately $130 million. With the acquisition, FedEx plans to expand its global commerce portfolio with more last mile delivery offerings and specialized fulfillment solutions.

P2P is headquartered in Laindon, UK, and will operate as a subsidiary of FedEx Cross Border within the FedEx Trade Networks operating company. The acquired company has relationships with private, postal, retail and clearance providers in more than 200 countries, enabling FedEx to bring more services to a global consumer base.

P2P’s main offering is its proprietary “TRAKPAK” software suite, a solution designed to support cross-border e-Commerce and provide retailers with end-to-end delivery visibility. TRAKPAK leverages the P2P network of local last mile delivery partners, providing expert in-country delivery and store pick-up options to give retailers insight into where a delivery is at any given time.


Tesla Semi Trucks To Handle Short-Haul Routes

FedEx also is bolstering its operations stateside, reserving 20 Tesla Semi trucks, which FedEx Freight will operate in the U.S. and Canada. Tesla is scheduled to begin production on the electric-powered trucks in 2019.

Chief competitor UPS already has reserved 125 Semi trucks. Walmart pre-ordered 15 Tesla Semis in November 2017, and Canadian grocery giant Loblaw ordered 25, indicating that major retailers feel these vehicles will facilitate their nationwide delivery expansions. The Semis will be able to travel up to 500 miles between stops and have a recharge rate of 400 miles in 30 minutes via Tesla’s new Megachargers.

In a statement, FedEx noted that the reserved Tesla trucks would be used by the firm’s “less-than-truckload” unit; FedEx Freight oversees regular, short-haul routes for shipments of smaller cargo between 150 pounds and 20,000 pounds. At present, the number of third-party fast-charging facilities is lacking, but the Semi’s 500-mile range should be able to tackle most short-haul trips on a single charge. Long-haul routes likely will require more charging facilities to be installed.

Both moves come right after FedEx revealed plans to open 500 new FedEx Office locations in Walmart stores by 2020. As Amazon continues to prepare its own shipping service, FedEx appears to be doing everything in its power to fortify its delivery services, whether across the U.S. or overseas.

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