FedEx Corp said its FedEx Express subsidiary has entered into a seven-year express air transportation contract with the United States Postal Service for about $10.5 billion.
FedEx's current contract ends in September 2013, and the new contract will begin in October 2013.
The company on Tuesday also launched a new service to let customers select from a range of options to schedule dates, locations and times of delivery. Rival UPS began offering its "UPS My Choice" service more than a year ago.
(Reporting by Nivedita Bhattacharjee in Chicago; Editing by Carol Bishopric)