FedEx cutting out deliveries in some markets on Sundays
FedEx began making Sunday deliveries in response to increased demand during the COVID-19 pandemic
FedEx Corp is cutting back on Sunday deliveries in some low-density, rural U.S. markets.
The suspension of service will go into effect Aug. 15.
The company started Sunday deliveries after the COVID-19 pandemic hit causing a jump in demand as people placed orders while staying home.
FedEx Corp. announced plans to cut back on Sunday delivery. (iStock / iStock)
FedEx says the move to cut back will help to increase the efficiency of its Ground unit which handles the bulk of the company's e-commerce home deliveries and reaches nearly 80% of the U.S. population on Sundays.
FEDEX RECEIVES 150 OF GM'S BRIGHTDROP ELECTRIC DELIVERY VANS
FedEx is optimizing its delivery network based on market conditions and customer needs, the company said in an emailed statement to Reuters.
A FedEx Express courier prepares the numerous packages inside the delivery truck parked on the street. (Budrul Chukrut/SOPA Images/LightRocket via Getty Images / Getty Images)
"We accelerated the rollout of Sunday residential delivery coverage to nearly 95% of the U.S. population. As economic conditions have shifted, we are making operational adjustments to suspend Sunday delivery operations," the statement said.
FEDEX TO TEST AUTONOMOUS DRONE CARGO DELIVERY IN 2023
The specific markets that would be affected have not been revealed yet.
FedEx Ground truck driving on an interstate. (iStock)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FDX | FEDEX CORP. | 258.01 | -1.46 | -0.56% |
CLICK HERE TO READ MORE ON FOX BUSINESS
At least two brokerage firms had cut its target price on FedEx's stock earlier this month.
Reuters contributed to this report.