FedEx boosts e-commerce capabilities with acquisition of P2P

FedEx doubles-down on cross-border e-commerce fulfillment with the acquisition of UK-based P2P Mailing Limited. Photo source: FedEx Corp.

Today, FedEx announced the acquisition of UK-based P2P Mailing Limited for £92 million, in a move that bolsters the global integrator’s worldwide e-commerce delivery capabilities.

P2P facilitates cross-border e-commerce deliveries with an asset-light model that relies on a proprietary IT platform to string together final-mile delivery and customs partners in different regions to deliver e-commerce parcels. Like FedEx, P2P offers a range of delivery services targeting varying customer needs, including international, domestic, tracked, untracked and express delivery services.

But unlike FedEx, which relies primarily on its own assets and infrastructure for deliveries, P2P leverages “relationships with private, postal, retail and clearance providers” to provide “plug-and play options with carrier networks and customer systems” in hundreds of markets, according to FedEx.

Although on a smaller scale, P2P’s business model is somewhat similar to that of the Cainiao logistics platform owned by Chinese e-tailer Alibaba. Cainiao links fragmented logistics service providers together in order to ship goods sold on the company’s various e-commerce platforms.

Moving forward, P2P will operate as a subsidiary of FedEx Cross Border, which following recent reorganization, operates as a unit within FedEx Trade Networks. Carl W. Asmus, president and CEO, FedEx Cross Border said, “Global e-commerce continues to grow at a rapid pace, and more and more merchants, marketplaces, e-commerce and social platforms are looking for innovative, cost-effective ways to get merchandise from distribution points in one country to customers in another.”

Cross-border e-commerce is sure to be a hot topic at this year’s Cargo Facts Asia. We invite you to join us in Shanghai 23-25 April at the Mandarin Oriental Pudong to hear more from FedEx and other e-commerce giants, including Alibaba’s Lazada and JD.com Logistics. To check out this year’s agenda, visit www.cargofacts.com/agenda2018.

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