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But analysts say that the company, which moves documents and packages by ground as well as by air, has at least partially insulated itself from the vagaries of the national economy.
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Last year, FedEx took aim directly at United Parcel Service, the longtime ground market leader with a 77% share, by offering home package delivery by ground.
FedEx wants to ship heavier packages, but move them by ground at up to half the cost.
FedEx said the company could not make deliveries outside the United States yet, and that it had suspended its money-back guarantee on same-day service.. United Parcel Service said most of its delivery operations were continuing on schedule, because more than 10 million of its packages each day are sent by ground, compared with about only two million by air.
Amazon's ambitious plans to deliver packages by drone have been grounded for the near future as the US Federal Aviation Administration FAAA) makes it clear that they won't allow "model aircraft" to be used for "delivering packages to people for a fee".
This effort helped string together the company's disjointed operations, creating a base to ship packages to virtually every destination in the nation, by ground or air.
But per-unit revenue at FedEx Ground is low -- customers who will pay $20 to ship a five-pound package by air rarely pay more than $5 to send it by ground.
Hidden in the list of recalled products are 40-pound chubs (catering packages) of ground turkey.
The FedEx Corporation will spend $1.8 billion to expand its small package carrier, FedEx Ground, by adding 10 hubs and enlarging 23 others, the company said yesterday.
Conclusion: Don't judge packages by packaging.
This is especially important for ground beef packaged by a butcher.
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