The package express industry in the United States has evolved from its origins on bicycles on the streets of Seattle to its current position as a central player in internet driven supply chain. It may also be revolutionizing the freight transportation industry. The package express (PE) industry is comprised of three segments: small parcels, overnight letters and courier services. FedEx is a newer entrant into the package delivery industry. The company was built on a set of innovative ideas for express delivery. Federal Express (FedEx) is a dramatic example of the dynamics of the express package industry; it is the second largest express package carrier in the world after United Parcel Service (UPS). FedEx's focus on air transportation and rapid delivery has placed it at a cost disadvantage relative to UPS in its ground operations. The greatest single challenge faced by FedEx is the steady rise in electronic commerce and transmission of documents.