FedEx offers overnight courier, ground, heavy freight, document copying and logistics services. Founded in 1971, FedEx is an improbable success because of the unique position of the United States Postal Service. Because Congress mandates that the postal service must offer flat rate coverage to every zip code in the country, private companies are forbidden from competing in the USPS's core business. But FedEx and its competitor UPS have demonstrated that private companies can compete alongside the USPS without being able to offer a full range of services.
In 2000, FedEx and the United States Postal Service initially signed a 7-year contract to carry all the USPS overnight and high-priority mail throughout the FedEx system; the postal contract has been extended until 2012. Given this contract, the rationale behind the special status afforded the postal service has been called into serious question.
FedEx pioneered using jet aircraft to deliver sensitive packages very quickly. This space has been filling up with competitors, but FedEx has a significant infrastructure in place that will give its business an excellent chance to grow.
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