The news: FedEx is partnering with last-mile delivery company OneRail to launch a same-day shipping program, FedEx SameDay Local. The offering allows shoppers to select 2-hour or end-of-day delivery at checkout, which is particularly relevant for time-sensitive categories like furniture.

OneRail will provide retailers with a rate card that allows them to set their own same-day pricing based on their value propositions, per CNBC.

How it works: Once a consumer selects same-day delivery, the service taps into OneRail’s AI-powered platform to optimize routing and dispatch across a network covering nearly 99% of the US, including more than 1,000 carriers and 12 million drivers.

Why it matters: Retailers can use the service to counter increasingly fast delivery offerings from Amazon and Walmart.

Amazon recently expanded its lineup with 1- and 3-hour delivery options for more than 90,000 items. The 1-hour option is live in hundreds of US cities and costs $9.99 for Prime members and $19.99 for non-Prime members, while the 3-hour option is available in more than 2,000 locations and costs $4.99 for Prime members and $14.99 for non-Prime members.

Walmart’s Express Delivery allows shoppers to pay $9.99 for delivery in as little as 1 hour. The retailer said usage of its service—which guarantees delivery in under 3 hours—rose more than 60% YoY last year. It also plans to expand drone delivery to 150 additional stores through its partnership with Wing.

Implications for retailers: FedEx’s service allows retailers to offer fast delivery without building it in-house or relying on intermediaries like Instacart, Uber, or DoorDash. That’s increasingly important as expectations rise, with nearly two-thirds of shoppers willing to pay $7 to $9 for ultrafast delivery, per a recent report by Metapack and Retail Economics.

The model also lets retailers retain control over customer relationships, data, and pricing, which is a clear advantage over third-party platforms.

As demand for speed becomes table stakes, services like this give retailers a way to compete without ceding control or profitability.