FedEx Acquires RouteSmart Technologies
15th February 2025
FedEx Corp. has announced that it has acquired RouteSmart Technologies, a provider of route optimization solutions with over 40 years of expertise, providing mission-critical technology to newspaper, postal & parcel, public works, utilities & field service, and waste collection organizations worldwide.
The combination of RouteSmart’s leading technology solutions with FedEx’s physical and data networks will enable one of the world’s largest express transportation providers to further drive efficiency across its own global operations, while also strengthening the company’s suite of technology solutions.
“This is yet another step on our journey to make supply chains smarter for everyone as we revolutionize logistics,” said Raj Subramaniam, President and Chief Executive Officer, FedEx Corporation. “Our physical network generates terabytes of data that contain invaluable insights about the global supply chain. Through this acquisition, we will use RouteSmart’s expertise and proven technology platform to accelerate the deployment of a common route optimization capability for FedEx operations that will enable our team members to work safer and smarter as they deliver superior service to our customers.”
The two companies expect a seamless integration as they build upon many years of collaboration. FedEx has been a long-standing customer of RouteSmart, using its Routing as a Service (RaaS) product in its ground operations for many years. RaaS serves as the backbone for the internal FedEx Route Optimization (FRO) tool, which the company is rolling out globally as part of its ongoing network transformation.
“We are excited to tighten our strategic relationship with FedEx as we further drive efficiency throughout FedEx’s global operations and accelerate our solutions for all clients we serve,” said Larry Levy, president, RouteSmart Technologies.
RouteSmart will continue to work with customers across a broad range of industries. Headquartered in Columbia, Maryland, RouteSmart will operate as a standalone entity under FedEx Dataworks, which is a direct subsidiary of Federal Express Corporation.
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