FedEx and AOL Partner to Simplify Electronic Transactions

Strategic Insights -

FedEx, a leading logistics and transportation company, is teaming up with America Online's (AOL) popular Web site, Netcenter, to offer electronic sales, package tracking, and other services. This alliance is designed to simplify transactions on the Internet and speed up product deliveries. The partnership between FedEx parent company FDX and Netscape, an AOL subsidiary, is expected to strengthen both companies in the rapidly growing electronic commerce market. As of this year, electronic commerce via the Internet has reached $127 billion in sales, and it is predicted to reach $1.4 trillion by 2003.

Key Takeaways:

  • The partnership between FedEx and AOL's Netcenter will allow users to buy goods, arrange deliveries, and track packages without switching Web sites.
  • The integration of services will simplify electronic transactions on the Internet and speed up product deliveries.
  • The alliance between FDX and Netscape is a multiyear, multimillion-dollar deal, but the terms of the agreement have not been disclosed.
  • The partnership is expected to generate significant revenue for both companies, but the exact amount has not been revealed.
  • The agreement builds on the companies' previous collaboration on software development and leverages their expertise in information technology.
  • FedEx shares on the New York Stock Exchange closed at $102.75 on the day of the announcement, up $3.31 1/4.
  • AOL shares ended the day at $157, down $10.50.

Statistics:

  • Electronic commerce via the Internet is expected to reach $127 billion in sales this year.
  • The market is predicted to grow to $1.4 trillion by 2003.
  • Netcenter has over 12 million subscribers, making it one of the world's largest commercial Web sites.
  • The partnership between FedEx and Netcenter will cover a wide range of goods, from cars to perfumes.

Sources:

  • Dave Hirschman, "FDX Corp., AOL to offer electronic sales on Netcenter", The Commercial Appeal
  • Netscape (http://www.netcenter.com)
  • FedEx (http://www.FedEx.com)
  • AOL (http://www.aol.com)