FedEx Adds Same-Day Delivery Using OneRail’s AI Platform

FedEx is launching a same-day delivery program with last-mile delivery company OneRail, according to CNBC.

The partnership allows retailers to provide delivery windows as short as two hours or by end of day, along with near real-time tracking, FedEx said. Pricing will be set by individual retailers based on their own checkout strategies.

“Our value prop is about speed, reliability and visibility, and we’re always trying to push the envelope on that value prop,” Jason Brenner, Senior Vice President of Digital at FedEx, said in an interview with CNBC.

OneRail’s platform uses machine learning to assign deliveries across a mix of gig drivers, courier fleets, and internal capacity, while continuously adjusting routes based on traffic, order priority, and real-time conditions.

The system integrates with retailer store networks, allowing orders to be fulfilled locally without requiring new infrastructure. Customers can select more precise delivery windows, including time-sensitive options for larger items.

FedEx has been building out data and analytics capabilities through its Dataworks unit, which focuses on using data and predictive analytics to improve package flow, visibility, and delivery performance.

Amazon recently said it is rolling out delivery windows of one to three hours in select U.S. markets. Walmart and Target have also expanded express delivery services.

Retailers are using store-based fulfillment and third-party delivery networks to offer faster shipping without building dedicated last-mile infrastructure, reducing the cost and complexity of same-day delivery.

OneRail said its network covers nearly 99% of the U.S., with more than 1,000 drivers completing around 80,000 deliveries per day within 30 minutes or less.

“We’re excited to partner with FedEx,” Bill Catania, CEO of OneRail, told CNBC. “It unlocks even more capabilities for the retailer, which really lets them own their customer and their data.”

Catania said retailers will receive a rate card and can set their own same-day delivery pricing based on their value proposition.

“This is going to be priced extremely competitively,” he said. “Retailers and brands [will be] able to build a highly compelling value proposition to their customers.”

At scale, same-day delivery depends on real-time decision-making across routing, carrier selection, and delivery windows, where AI systems balance speed, cost, and reliability across large delivery networks.

FedEx said the model allows retailers to scale same-day delivery without managing complex logistics operations internally.