Online grocery platform Boxed, which sells bulk consumables, has entered a multiyear collaboration with FedEx, according to a Thursday (May 12) press release.
Boxed licenses its eCommerce software to enterprise retailers. The agreement with FedEx comes as a way for Boxed to cut down on what it spends on transportation across fulfillment centers, and the company plans to reinvest the money it saves in better pricing for customers and more promotions, along with letting more Boxed customers get access to seven-day-a-week service.
The commitment from FedEx will help Boxed add to its retail business and provide “a consistent delivery experience” in the U.S.
“In this challenging supply chain environment, e-commerce companies are seeking new avenues to counter escalating costs, and provide the best possible service to their customers,” Boxed CEO Chieh Huang said in the release. “This enhanced alliance with FedEx provides us with the opportunity to address both.”
“The collaboration between FedEx and Boxed demonstrates how e-Commerce providers and shipping companies can craft new solutions to collectively meet our customers’ new demands and needs today and tomorrow,” said Ryan Kelly, vice president of eCommerce, SAM and retail marketing at FedEx. “We’re proud of this alliance and look forward to enabling Boxed and its retailers access to supply chain flexibility and capability that is unrivaled in the marketplace. It is what’s next for businesses of all sizes.”
In March, FedEx said its shipment volume grew to over 110 million per day, which comes out to over 40 billion packages per year, according to PYMNTS.
Read more: Price Increases Help FedEx Offset Softening Package Volume
While FedEx managed the surge in volume thanks to several years of planning, it didn’t expect this would happen for about four more years.
J.P. Morgan analysts said they were surprised at FedEx’s fuel surcharge not giving the company bigger earnings, as FedEx said the surcharge had been a big boost for its operating income.
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