FedEx acquires RouteSmart Technologies to boost delivery optimization

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Global Industry News

FedEx acquires RouteSmart Technologies to boost delivery optimization

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John A. Smith FedEx Express Leadership President and Chief Executive Officer U.S. & Canada Ground Operations | FedEx

By Sky Industry News

Feb 5, 2025

FedEx Corp. has announced the acquisition of RouteSmart Technologies, a company known for its route optimization solutions across various sectors such as postal and parcel services, utilities, and waste collection. This acquisition aims to enhance FedEx's global pickup and delivery optimization by integrating RouteSmart’s technology with FedEx's existing physical and data networks.

Raj Subramaniam, president and CEO of FedEx Corporation, stated, “This is yet another step on our journey to make supply chains smarter for everyone as we revolutionize logistics.” He emphasized that the integration would help in accelerating the deployment of a unified route optimization capability within FedEx operations.

FedEx has been utilizing RouteSmart’s Routing as a Service (RaaS) product in its ground operations for several years. The RaaS platform is integral to the internal FedEx Route Optimization tool that is being implemented globally.

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Larry Levy, president of RouteSmart Technologies, expressed enthusiasm about strengthening their strategic relationship with FedEx. He remarked, “We are excited to tighten our strategic relationship with FedEx as we further drive efficiency throughout FedEx’s global operations.”

RouteSmart will continue serving its diverse client base while operating under FedEx Dataworks, a subsidiary of Federal Express Corporation. The company will maintain its headquarters in Columbia, Maryland.

FedEx Corp., with an annual revenue of $87 billion and over 500,000 employees worldwide, aims to achieve carbon-neutral operations by 2040. Meanwhile, RouteSmart Technologies brings over four decades of expertise in optimizing complex delivery and service operations through its RaaS platform.