FedEx Fulfillment vs 99Minutos: same day delivery is not a carrier, it is a system

In this article you will find:

1. Differences at a glance
2. FedEx Fulfillment: Why the largest network wasn't enough
3. 99Minutos: what it is, how it works and what it reveals about the future of the last mile
4. The four product lines of 99Minutos and what they say about the market
5. Fast delivery data in Mexico: how much it matters and under what conditions
6. The same day paradox: when the carrier is not the bottleneck
7. The map that no one shows: urban coverage vs national coverage
8. How to think about delivery speed as a business decision, not a cost one
9. Cubbo and 99Minutos: the system that solves the paradox
10. Frequently asked questions

There is a very common confusion when brands start talking about fast delivery: believing that hiring a last-mile carrier that promises same-day is enough to offer same-day delivery. It is not.

Same-day delivery requires two things that have to be resolved at the same time: a carrier with a dense urban network and tight dispatch cuts, and a warehouse that has the inventory already positioned a few kilometers from the customer before the order arrives. If you only have one of the two, the promise is not fulfilled.

This comparison is not the typical carrier vs 3PL. It's about understanding why FedEx Fulfillment, with the entire FedEx network behind it, was never able to offer same-day delivery in Mexico, and why 99Minutos, being the leading technological last-mile carrier in LATAM, also does not solve the entire problem on its own.

Differences at a glance

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FedEx Fulfillment: Why the largest network wasn't enough

FedEx Fulfillment operated between 2017 and 2022 in the US as an extension of FedEx's carrier business into 3PL ecommerce. The logic was seemingly obvious: if you already have the transportation network, adding warehouses and fulfillment should be a natural step.

It didn't work well. FedEx's strength is the movement of packages between points, not the operation of e-commerce warehouses with high SKU density, complex individual orders and real-time inventory management. They are two different operating models that require completely different cultures, technologies and cost structures.

But there is something more relevant to the Mexican context: FedEx Fulfillment never operated in Mexico. Its entire warehouse network was in the U.S. One brand with customers in Mexico that used FedEx Fulfillment still had to separately figure out transportation from the U.S. or find a local 3PL.

That gap, between FedEx's global transportation network and the operational reality of ecommerce in Mexico, is exactly the gap that carriers like 99Minutos and local 3PLs came to solve.

99Minutos: what it is, how it works and what it reveals about the future of the last mile

99Minutos was founded in 2014 in Mexico City by Alexis Patjane. It started as an ultra-fast delivery ecommerce (hence the name), pivoted to being the last mile infrastructure for other ecommerce, went through Y Combinator in the Winter 2020 batch, raised $40M in its Series B from Prosus Ventures and Kaszek, and an additional $82M in its Series C from Oak HC/FT, according to data fromLatamList. Total raised: more than $127M.

What makes 99Minutos different from a traditional parcel service:

• Technology as a differential advantage:Routes are automatically optimized, tracking is real-time for the consumer, delivery windows are predictable and customer communication is part of the standard service. A 99Minutos delivery driver averages 60 to 80 packages per route, with dynamic routing that adjusts based on traffic and confirmed delivery times.
• Speed ​​as positioning:The promise of less than 99 minutes in dense urban areas is not marketing, it is the business model. The network is designed specifically for that, with urban distribution centers that allow for short distances and minimal transit time.
• Sustainability:99Minutos was the first LATAM carrier to offer zero-emission deliveries, with a specific service line.
• LATAM Coverage:They operate in Mexico (52 cities), Chile (6), Colombia (6) and Peru (4), making them one of the few last mile carriers with a consistent regional presence.

The 4 product lines of 99Minutos and what they say about the market

99Minutos is not just a carrier. Its evolution towards four different product lines reveals how the ecommerce logistics market is converging:

1. 99 minutes (last mile carrier):the original service. Less than 99 minutes, same day or next day in cities. The client integrates via plugin or API and 99Minutos collects and delivers.
2. Fulfill99 (fulfillment):99Minutos' own fulfillment centers. The direct answer to the problem described at the beginning: if you want same-day, the inventory has to be close to the customer. Fulfill99 is 99Minutos' commitment to offer storage close to its urban routes.
3. Ruta99 (SaaS routing):Route optimization platform for other logistics companies. This makes 99Minutos a logistics technology provider, not just a carrier.
4. Punto99 (PUDO network, pick-up and drop-off):network of collection and return points. It allows the consumer to pick up their order at a nearby point, reducing the percentage of failed deliveries on the first visit.

These four lines together show that 99Minutos is building an ecosystem, not just a transportation service. The relevant issue for an ecommerce brand is to understand which of those lines solves which problem, and what has to be in its own operation for the system to work.

Fast delivery data in Mexico: how much it matters and under what conditions

Before deciding whether to invest in same-day as a growth lever, Mexican market data is relevant:

According to theAMVO analysis on same-day deliveries in CDMX, 76% of Mexican digital buyers prioritize speed of delivery when choosing where to buy, and 43% abandon the cart if the delivery time exceeds three days. Stores with fast shipping options increase their conversions by up to 25%.

An independent study published inMarketing4Ecommercefound that same-day can increase units per order by up to 63%: from an average of 1.9 units in orders with next-day shipping to 3.1 units in orders with same-day. If the average ticket for a cart is $500 MXN, that effect takes the potential order to $820 MXN.

The last mile market in Mexico, according toMordor Intelligence, will grow from $15.72 billion USD in 2025 to $30.32 billion in 2031, with the same-day segment growing at 12.45% annually, above the market average.

The important nuance:These impacts are mainly measured in urban areas, where same-day is operationally viable. In municipalities outside the urban coverage area of ​​carriers like 99Minutos, the metric that matters most is reliability and average transit time, not extreme speed.

The same day paradox: when the carrier is not the bottleneck

Here's the point most often left out in conversations about same-day: the last-mile carrier solves the final leg, from your warehouse to the customer's doorstep. But for that stretch to last less than 99 minutes, the distance between the warehouse and the customer has to be short from before the order arrives.

This has a direct practical implication: hiring 99Minutos as a carrier does not give you same-day if your warehouse is 80 km from the client. It gives you a fast delivery person with a long distance. Delivery speed depends more on where your inventory is than how fast the delivery person is going.

This completely changes how a brand should think about its last-mile strategy:

Step 1: The inventory has to be positioned in the city where your clients live.If 60% of your orders go to CDMX and the inventory is in a warehouse in the State of Mexico 45 km from the center, same-day in most of the city's neighborhoods is not viable, regardless of the carrier.

Step 2: The dispatch cut-off must be synchronized with the carrier's pick-up.If the 3PL ships orders with a cutoff at 3pm and the carrier picks up at 4pm, the same-day window is only for orders received before 3pm. That covers part of the demand, not all.

Step 3: The carrier must have coverage in your clients' zip codes.Not all CDMX neighborhoods are covered by all last mile carriers. Verifying exact coverage by zip code is mandatory before offering same-day at checkout.

The guide onwhat is fulfillment for ecommercebreaks down which part of the logistics chain each type of supplier resolves, helping to understand exactly where 99Minutos fits into the full ecosystem.

The map that no one shows: urban coverage vs national coverage

99Minutos operates in 52 cities in Mexico. That's significant urban coverage, but Mexico has more than 2,400 municipalities. The next question is critical for any ecommerce brand: what percentage of your orders go to those 52 cities?

For brands with a strong base in CDMX, Guadalajara, Monterrey and other metropolises, the response can be high. But for brands with diversified national distribution, a significant portion of orders go to destinations outside of 99Minutos' urban coverage.

That is not a problem for 99Minutos, it is the nature of the business: an urban last mile carrier is not designed to deliver in Chetumal, Tulancingo or Chilpancingo. For these destinations, carriers with extensive national coverage (Estafeta, DHL Express, J&T) are more suitable.

The practical consequence: a last-mile strategy for national ecommerce needs more than one carrier, with dynamic selection by destination. The same order that goes to Condesa in CDMX may be perfect for 99Minutos; Those who go to Mérida need a different carrier.

How to think about delivery speed as a business decision, not a cost one

The most common mistake when evaluating same-day is treating it as a cost variable (how much more expensive is expedited shipping?) instead of a revenue variable (how much more do I sell if I offer same-day?).

Los datos de conversión y ticket promedio sugieren que para las categorías y mercados correctos, el same-day es una palanca de revenue, no un costo extra. A 25% increase in conversion and 63% increase in units per order, applied to a specific urban segment where the promise is operationally viable, can change the numbers completely.

The calculation that matters is:

• What percentage of my clients are in cities with same-day coverage?
• How much does my conversion rate increase if I offer same-day checkout?
• How much does the average ticket increase?
• How much does same-day vs next-day service cost per shipment?
• How many additional orders do I need for the cost delta to pay for itself?

For most brands with a relevant urban customer, this calculation turns out to be positive after a certain volume. Thecustomer retention rate in ecommerceadds another dimension: Customers who receive their orders the same day have significantly higher repurchase rates, turning each expedited shipment into an investment in LTV, not just a shipping expense.

Cubbo and 99Minutos: the system that solves the paradox

Cubbo has 99Minutos integrated as one of its 10+ carriers with automatic selection per order. This means that when an order arrives from a neighborhood in CDMX covered by 99Minutos and the system determines that same-day or next-day is viable, 99Minutos is automatically assigned. When the order goes to Hermosillo, the carrier with the best coverage is assigned andprice for that destination.

But the integration with 99Minutos is only possible thanks to the second piece of the system: Cubbo's warehouses are in Mexico City. Inventory is already positioned in the city before the order arrives. The distance from the warehouse to the CDMX neighborhoods is correct so that 99Minutos can fulfill its promise.

What that means in practice:

• Same day shipping in CDMXwith cut-off at noon:Orders received before the cutoff are shipped that same day with 99Minutos or another last mile carrier, depending on availability and destination. The consumer receives real-time notification of the tracking.
• 1.3 days national average:For destinations outside CDMX, the system selects the most efficient carrier among more than 10 options with negotiated rates on the volume of more than 500 brands. The result is that speed is not sacrificed outside the city, it is only optimized with the correct carrier per destination.
• Frictionless multi-carrier for brand:The brand does not manage contracts with 99Minutos, Estafeta, J&T and DHL separately. Everything is integrated into the same WMS, with the same centralized tracking and the same incident management.
• Cubbo Engage:automates 85.3% of post-purchase queries via WhatsApp, including order tracking with 99Minutos or any other assigned carrier. The consumer receives the updated status without the care team having to intervene.
• WMS with real-time inventory:integrated with Shopify, WooCommerce, VTEX,Free market, Amazon Mexico and TikTok Shop. The same-day promise at checkout is automatically activated or deactivated depending on the stock available in the CDMX warehouse, without manual intervention.

To see if the model fits your operation,talk to a Cubbo expert.

Frequently asked questions

Does 99Minutos offer storage service?

99Minutos' core service is last-mile delivery, not warehousing. They have a separate line called Fulfill99 that offers fulfillment centers. They are different products with separate contracts. If you only hire the carrier, the inventory remains your responsibility.

Does Cubbo work with 99Minutos?

Yes. 99Minutos is integrated as one of more than 10 active carriers on Cubbo with automatic selection per order. For orders in CDMX neighborhoods covered by 99Minutos, the system can automatically assign them based on the shipping conditions.

Can any ecommerce offer same-day?

Operationally, not without meeting two conditions: inventory positioned within a short distance of the end customer and a carrier with coverage in those zip codes. If the inventory is in the State of Mexico, 60 km from the destination, no carrier can do same-day shipping in an economically viable way for standard shipments.

How much does same-day affect conversions?

According to AMVO data, offering same-day can increase conversion by up to 25%. An independent study shows increases of up to 63% in units per order for orders with a same-day vs. next-day option. The impact varies by product category and buyer profile.

Did FedEx Fulfillment offer fast delivery in Mexico?

No. FedEx Fulfillment never operated in Mexico. Its warehouses were in the US and the service was oriented towards ecommerce for US consumers. FedEx as a carrier does operate in Mexico, but it is a separate service from the 3PL that closed in 2022.

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