FedEx Ground
| File:FedEx Ground - 2016 Logo.svg | |
| FedEx Ground | |
| Formerly | Roadway Package System (RPS; 1985–2000) |
| Company type | Subsidiary |
| Industry | Transportation |
| Founded | 1985 |
| Founder | Roadway Services Inc. |
| Headquarters | , United States |
Area served |
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Key people | John A. Smith (president and CEO) |
| Services | Package delivery |
| Parent |
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| Subsidiaries | FedEx Ground Economy |
| Website | Lua error in Module:Official_website at line 90: attempt to index field 'wikibase' (a nil value). |
FedEx Ground Package System, Inc., commonly referred to as FedEx Ground, is a United States-based ground parcel delivery firm with headquarters located in Moon Township, Pennsylvania, near Pittsburgh. Functioning as a subsidiary within the FedEx Corporation family, the company was originally established in 1985 under the name Roadway Package System (RPS) by the transportation enterprise Roadway Services Inc., which later became Caliber System. FedEx expanded its ground service offerings by acquiring Caliber in 1998, subsequently rebranding RPS to FedEx Ground in 2000.
Operating across the United States and Canada, FedEx Ground provides domestic parcel delivery and cross-border ground shipping between these countries under the FedEx International Ground banner. Its operational strategy centers on cost-efficient ground transportation, with most routes operated by independent contractors who own their vehicles. The company's main services include commercial package delivery, residential-focused FedEx Home Delivery, and FedEx Ground Economy (previously known as FedEx SmartPost), a budget-friendly parcel consolidation solution.
History
Established on March 11, 1985, RPS was created to rival UPS Ground, prioritizing streamlined operations and reduced expenses. It was among the first to implement barcode technology for shipment tracking, enabling full visibility throughout the delivery process.
Supported by its parent company RSI—which controlled multiple transportation businesses including the less-than-truckload carrier Roadway Express—RPS experienced swift growth, operating 130 terminals that covered approximately 70% of the U.S. by 1988. Following RSI’s divestiture of Roadway Express in 1995 and its transformation into Caliber System, RPS remained Caliber’s principal subsidiary.
In 1997, Fred Smith, founder of FedEx, initiated discussions with Dan Sullivan—RPS co-founder and Caliber System president—regarding a merger to integrate ground services into FedEx’s predominantly air-based network. The acquisition of Caliber completed in January 1998 enabled FedEx to offer combined air and ground logistics solutions.
Before completing this acquisition, FedEx reorganized into a holding company named FDX Corporation in October 1997. Afterward, FDX unified its subsidiaries and undertook rebranding efforts in 2000: Federal Express became FedEx Express; RPS was renamed FedEx Ground; Roberts Express transformed into FedEx Custom Critical; and Viking Freight was rebranded as FedEx Freight by 2001.
The launch of its residential delivery service, FedEx Home Delivery, occurred in 2000. In 2004, FedEx enhanced its parcel consolidation capacity by acquiring Parcel Direct from Quad Graphics for $120 million and renaming it FedEx SmartPost.
Leadership changes saw Henry Maier replace David Rebholz as CEO and President of FedEx Ground in May 2013.
To address rising e-commerce demand, FedEx Ground expanded its U.S. operational days from five to six per week starting September 2018 and further extended residential deliveries to seven days annually as of January 2020.
In 2021, a tragic mass shooting at the Indianapolis facility resulted in nine deaths—including the shooter—a former employee—prompting revisions to the company’s security protocols.
FedEx Ground
FedEx Ground represents the primary package delivery segment within the division, providing daily service throughout all 50 states in the US. Delivery times range from one to five days within the contiguous United States and extend between three and seven days for Alaska and Hawaii. Its international counterpart, FedEx International Ground, facilitates shipments between the United States and Canada.
Initially limited to Monday through Friday operations, FedEx Ground extended its service to six days a week (Monday to Saturday) in 2018, then further expanded to seven-day delivery starting January 2020. These enhancements strengthened its position in the competitive parcel delivery sector.
FedEx Home Delivery
Targeting residential customers across the United States, FedEx Home Delivery was introduced in 2000 with deliveries scheduled five days per week, from Tuesday through Saturday. In 2020, this service broadened to offer seven-day delivery and raised the maximum allowable package weight from 70 pounds up to 150 pounds. These adjustments aligned it more closely with FedEx Ground’s capabilities and supported growth in e-commerce shipping volumes.
FedEx Ground Economy
As a branch of FedEx Ground, FedEx Ground Economy specializes in consolidating parcels, primarily focusing on lightweight residential shipments. It provides an economical alternative to standard ground services by offering slower transit times and trackable shipments without guaranteed delivery dates. This service is designed for shippers holding SmartPost agreements.
The service originated as Parcel Direct in 1998, established by Quad Graphics to serve catalog clients. Over time, it expanded through acquisitions such as PaqFast, Inc. in 2004 before being purchased by FedEx for $120 million. At that time, Parcel Direct operated a network of 12 distribution centers and employed approximately 450 personnel.
Parcel Direct’s operational strategy involved "zone skipping," where packages were transported via FedEx’s infrastructure before being handed off to the USPS for final delivery, thereby reducing costs by bypassing direct last-mile operations.
Following acquisition, the service was rebranded as FedEx SmartPost and expanded its network to 26 hubs nationwide by 2021. Smaller volume pickups are managed by FedEx Ground, while larger volume shippers utilize dedicated SmartPost trailers.
Beginning in 2019, FedEx initiated a transition of last-mile deliveries from USPS to its own Ground and Home Delivery networks, completing this shift by 2020 to enhance delivery quality and operational efficiency. Subsequently, the service was renamed FedEx Ground Economy in 2021.
Branding
During the early 2000s, most FedEx divisions employed a branding style featuring a purple "Fed" combined with an "Ex" in various colors; however, FedEx Express retained its original purple and orange color scheme. FedEx Ground distinguished itself by using green for the "Ex." In August 2016, FedEx announced plans to unify all divisions under a consistent purple "Fed" and orange "Ex" branding. The company aimed to finalize this rebranding effort by 2021 to reinforce brand recognition and enhance competitive positioning in the marketplace.