Business Insider

FedEx has same-day ambitions, but a top exec says it won't get into a race to the bottom with gig economy startups

Dabbling in the gig economy

While taking business from some gig platforms, FedEx's subsidiary ShopRunner is creating gigs for at least one. In December, FedEx acquired ShopRunner, which allows consumers to pay a one-time fee for 2-day shipping from dozens of retailers. The e-commerce platform announced a same-day delivery program with American Eagle Outfitters in June, with delivery services provided by GoFor, a Canadian gig delivery company with $23 million in venture funding. 

Philips said that though FedEx isn't providing the delivery service in this partnership, the ShopRunner acquisition could present opportunities for FedEx to grow same-day delivery.

FedEx founder Fred Smith (who may be nearing retirement) built FedEx by buying and knitting together disparate transportation companies. "Let's just say we're going to do the same thing with ShopRunner," Philips said, adding that there is a long roadmap for integrating the acquisition. 

"ShopRunner is a recent acquisition," he said. "We're just getting warmed up."

 

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