FedEx cutting out deliveries in some markets on Sundays
FedEx began making Sunday deliveries in response to increased demand during the COVID-19 pandemic
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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.
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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.
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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. | 295.21 | +0.75 | +0.25% |
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At least two brokerage firms had cut its target price on FedEx's stock earlier this month.
Reuters contributed to this report.