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In 2022, FedEx created a unit called Dataworks with the goal of leveraging massive amounts of parcel data in its delivery system as a new revenue source.

Dataworks’ mission since then has expanded to develop smarter e-commerce solutions that, in real time, can optimize fulfillment and enhance the online shopping experience by providing accurate expected arrival time for orders, while improving delivery density for parcel carriers.

FedEx (NYSE: FDX) has a gem of an idea that would help online retailers, who are struggling to manage the cost of free shipping offers, and better allow FedEx to play in the fast-growing B2C parcel market.

FedEx founder Fred Smith, who passed away recently, was a visionary who realized long before computers appeared in workplaces that people would care as much, if not more, about the information concerning a delivery than the package itself.

Monetizing parcel data with Dataworks seems to be another visionary leap for the company. However, since Dataworks’ debut more than three years ago, FedEx has not shared any details about the number of customers signed or revenue generated. That suggests its value proposition isn’t gaining traction with the customers.

The best available information suggests that Dataworks has relatively few customers compared to millions that ship with FedEx. Our best estimate for total annualized revenue that can be directly attributed to Dataworks is about $10 million. Compare that with a staff of 600 employees and contractors who cost several hundred million dollars per year.

Based on millions of parcel data, ShipMatrix has deep insight into the service performance of major parcel carriers and visibility into factors that result in a gap between raw on-time delivery (what consumers experience due to factors out of carriers’ control, such weather, bad addresses, etc.) and the adjusted on-time delivery, which only counts factors within a carrier’s control.

A ShipMatrix review shows that FedEx’s on-time performance for Priority Overnight service from January to July has improved, with far fewer weather-related delays compared to the same period last year and to those of competitors in 2025. It is very likely that Dataworks is generating value for the premium service. However, we are unable to find data supporting whether it has contributed to higher revenue.

For multiple reasons, the time is ripe to monetize the true value of this jewel. Last month, FedEx abruptly announced that Sriram Krishnasamy, chief digital and information office and president of Dataworks, was resigning. No one has been identified as his replacement.