FedEx has created a new service to address demand for faster fulfillment of online orders that allows for later driver pickups from stores so retailers can more easily offer next-day delivery and two-day delivery.

FedEx Extra Hours lets retailers expand their pickup cutoff by five to eight hours, sometime as late as midnight, allowing expansion of next-day delivery locally or two-day delivery anywhere in the continental U.S. via FedEx Express. The program launched in December with major retail clients including Best Buy and Auto Zone in multiple markets.

“Demand trends and…