Zapmail
Encyclopedia
Zapmail was a service, launched in 1984 by Federal Express (FedEx
) whereby fax
transmission was offered to customers as a means to expedite delivery of documents. This was before the widespread availability and use of fax services in homes and businesses. Eventually judged a commercial failure, it was discontinued just over two years later.
When sending documents in low volumes for customers, FedEx would collect the document as normal, bring it to the local depot where it would be sent by fax to a depot near the recipient's address. There the document would be printed, packaged and delivered to its destination.
For higher volume users, FedEx would install a “Zapmailer” fax machine in the client’s premises, usually in the mail room. To provide the fax network, FedEx had to invest heavily in fax machines from NEC
, which at the time were expensive. Additionally, rather than use the PSTN public phone network, the documents were carried over the company’s own packet-switched network, requiring still more investment.
The FedEx strategy was driven by an expectation that customers would pay a premium to have their documents delivered in hours instead of overnight. At the same time, by migrating document traffic from trucks and aircraft, significant savings could be made in the FedEx transportation network. These savings could later be used to offer discounted services to increase volumes and margins.
The Zapmailer did not conform to the ITU-T
(formerly CCITT) specifications which had been developed for fax transmission over public networks. This meant the Zapmailer could not communicate with the growing numbers of Group 3 fax machines entering service. Large clients in particular, and later most others, were able to buy their own fax machines and transmit documents themselves. Once this began to happen, customers could see that it was more cost effective to buy their own machine rather than pay for regular Zapmail services. This remained true despite price reductions from $35 to $10 per ten pages.
Quality problems with both the equipment and the transmission lines led the company to stop taking orders in March 1986. At that time the company stated that losses had accumulated to $200m and that an equipment upgrade was required. It was also stated that the “last mile
” transmission would be carried by satellite. This plan could not be realised due to the destruction of the space shuttle
Challenger
and the resulting grounding of the shuttle fleet.
It was further announced in August that the upgraded equipment would be compatible with Group 3 fax standards.
By this time, machine deliveries from NEC numbered in the thousands while customers were only in the hundreds. It was decided the service was a commercial failure and it was discontinued in October. $320m was written off and the employees of the Zapmail service were re-deployed within the company.
, FedEx COO
at the time of the Zapmail launch, went on to became CEO
of McCaw Cellular and later of Netscape
.
Fred Smith
, founder and CEO has been described as follows: “A guy like Fred Smith doesn’t build a company like FedEx without taking some risks and making some mistakes, but clearly the successes far outweigh the failures”.
The equipment used for Zapmail was reportedly sold to an electronics recycler for scrap value. It was the height of the 1980s DRAM
shortage as PCs and Faxes were becoming popular. The Los Gatos, California
company that purchased this scrap for a reported $1 million dollars removed the DRAM chips and sold them for a reported $8 million profit.
FedEx
FedEx Corporation , originally known as FDX Corporation, is a logistics services company, based in the United States with headquarters in Memphis, Tennessee...
) whereby fax
Fax
Fax , sometimes called telecopying, is the telephonic transmission of scanned printed material , normally to a telephone number connected to a printer or other output device...
transmission was offered to customers as a means to expedite delivery of documents. This was before the widespread availability and use of fax services in homes and businesses. Eventually judged a commercial failure, it was discontinued just over two years later.
History
Zapmail was offered at two levels of service.When sending documents in low volumes for customers, FedEx would collect the document as normal, bring it to the local depot where it would be sent by fax to a depot near the recipient's address. There the document would be printed, packaged and delivered to its destination.
For higher volume users, FedEx would install a “Zapmailer” fax machine in the client’s premises, usually in the mail room. To provide the fax network, FedEx had to invest heavily in fax machines from NEC
NEC
, a Japanese multinational IT company, has its headquarters in Minato, Tokyo, Japan. NEC, part of the Sumitomo Group, provides information technology and network solutions to business enterprises, communications services providers and government....
, which at the time were expensive. Additionally, rather than use the PSTN public phone network, the documents were carried over the company’s own packet-switched network, requiring still more investment.
The FedEx strategy was driven by an expectation that customers would pay a premium to have their documents delivered in hours instead of overnight. At the same time, by migrating document traffic from trucks and aircraft, significant savings could be made in the FedEx transportation network. These savings could later be used to offer discounted services to increase volumes and margins.
The Zapmailer did not conform to the ITU-T
ITU-T
The ITU Telecommunication Standardization Sector is one of the three sectors of the International Telecommunication Union ; it coordinates standards for telecommunications....
(formerly CCITT) specifications which had been developed for fax transmission over public networks. This meant the Zapmailer could not communicate with the growing numbers of Group 3 fax machines entering service. Large clients in particular, and later most others, were able to buy their own fax machines and transmit documents themselves. Once this began to happen, customers could see that it was more cost effective to buy their own machine rather than pay for regular Zapmail services. This remained true despite price reductions from $35 to $10 per ten pages.
Quality problems with both the equipment and the transmission lines led the company to stop taking orders in March 1986. At that time the company stated that losses had accumulated to $200m and that an equipment upgrade was required. It was also stated that the “last mile
Last mile
The "last mile" or "last kilometer" is the final leg of delivering connectivity from a communications provider to a customer. The phrase is therefore often used by the telecommunications and cable television industries. The actual distance of this leg may be considerably more than a mile,...
” transmission would be carried by satellite. This plan could not be realised due to the destruction of the space shuttle
Space Shuttle
The Space Shuttle was a manned orbital rocket and spacecraft system operated by NASA on 135 missions from 1981 to 2011. The system combined rocket launch, orbital spacecraft, and re-entry spaceplane with modular add-ons...
Challenger
Space Shuttle Challenger
Space Shuttle Challenger was NASA's second Space Shuttle orbiter to be put into service, Columbia having been the first. The shuttle was built by Rockwell International's Space Transportation Systems Division in Downey, California...
and the resulting grounding of the shuttle fleet.
It was further announced in August that the upgraded equipment would be compatible with Group 3 fax standards.
By this time, machine deliveries from NEC numbered in the thousands while customers were only in the hundreds. It was decided the service was a commercial failure and it was discontinued in October. $320m was written off and the employees of the Zapmail service were re-deployed within the company.
Drawbacks
- Color and high resolution images could not be transmitted
- Confidentiality – the uncovered documents had to be handled by FedEx employees at both ends of the fax transmission
- In some cases, there was customer confusion of how the service worked
- Fax machines, like many examples of electronic equipment, became affordable even for smaller companies
- Problems such as inability to transmit light toned originals and telephone line limitations persisted
- Because the service was still centered around the mailroom, often the speed advantage was lost in the internal mail system
- Machines were not compatible with public networks
Post script
Jim BarksdaleJim Barksdale
Jim Barksdale was the president and CEO of Netscape Communications Corporation from January 1995 until the company merged with AOL in March 1999.-Early life:...
, FedEx COO
Chief operating officer
A Chief Operating Officer or Director of Operations can be one of the highest-ranking executives in an organization and comprises part of the "C-Suite"...
at the time of the Zapmail launch, went on to became CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
of McCaw Cellular and later of Netscape
Netscape
Netscape Communications is a US computer services company, best known for Netscape Navigator, its web browser. When it was an independent company, its headquarters were in Mountain View, California...
.
Fred Smith
Frederick W. Smith
Fred Sidney Smith III , or Fred Smith, is the founder, chairman, president, and CEO of FedEx, originally known as Federal Express, the first overnight express delivery company in the world, and the largest in the United States...
, founder and CEO has been described as follows: “A guy like Fred Smith doesn’t build a company like FedEx without taking some risks and making some mistakes, but clearly the successes far outweigh the failures”.
The equipment used for Zapmail was reportedly sold to an electronics recycler for scrap value. It was the height of the 1980s DRAM
Dram
Dram or DRAM may refer to:As a unit of measure:* Dram , an imperial unit of mass and volume* Armenian dram, a monetary unit* Dirham, a unit of currency in several Arab nationsOther uses:...
shortage as PCs and Faxes were becoming popular. The Los Gatos, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
company that purchased this scrap for a reported $1 million dollars removed the DRAM chips and sold them for a reported $8 million profit.