In 1966 REA Express was operating a system primarily engaged in the expeditious transportation of express packages, less-than-carlot, and carlot shipments requiring special handling. REA Express also provided a world-wide shipping service through contracts with air carriers, acted as an ocean freight forwarder to many countries of the world, and provided local truck express service in some large cities of the United States. A subsidiary company of REA Express leased truck trailers to railroads, forwarders, and shippers for the use in trailer-on-flat car service. Such miscellaneous services as pick-up-and-delivery services for railroads, custom brokerage on import traffic, sale of traveler’s checks and money orders, and collection of C. O. D. charges were also performed. REA Express conducted its business through 8,200 offices and used in its operations 137,000 miles of railroad, 132,000 miles of air lines, 79,000 miles of motor carrier lines, and 6,600 of water lines. The company employed 30,000 persons and operated a fleet of 12,000 trucks. The company handled some 66,000,000 shipment annually. (Association of American Railroads)
-with all those assets and experience, even though rail shipping was in decline, REA dominated the private package business. It was already into trucks, had name recognition, a customer base etc. -why did it finally fail? Why didn’t it follow the trends and morph into something successful like UPS and FED EX?
We have a lot of information on the Railway Express Agency, later known as REA Express and also have significant background information available that will help you understand why REA Express failed.
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