FedEx Deliveries: Packages Soon Arriving Seven Days A Week

FedEx Corp. (FDX) has announced that it will begin offering delivery service seven days a week year-round to customers throughout the majority of the U.S. beginning in January 2020. FedEx previously offered delivery service seven days a week only during the peak holiday season.

The expanded delivery service is in response to the demand that FedEx has seen in e-commerce purchases. Adding to its need for delivery seven days a week is the handling of large packages such as TVs, furniture, auto parts, and even mattresses, which comprise more than 10 percent of the company’s delivery volume with further growth expected to continue.

FedEx said it is making efforts to ensure safe and reliable delivery of large packages by “designing new facilities, adding equipment to existing facilities and making other operational adjustments.”

“We have made significant investments in capacity, technology and automation at FedEx Ground over the past 20 years,” Raj Subramaniam, president and chief operating officer at FedEx Corp said.

“These investments have allowed us to gain ground market share for 19 of the last 20 years, and we are now ideally positioned to extend that growth as the average daily volume for small parcels in the U.S. is expected to double by 2026.

“Expanding our operations to include Sunday residential deliveries further increases our ability to meet the demands of e-commerce shippers and online shoppers.”

FedEx said it is also capitalizing on the integration of the U.S. Postal Service deliveries into its FedEx Ground operations to offer same-day delivery service. This accounts for nearly two million packages, the company said. FedEx also said that the integration of SmartPost packages with its Ground network will occur by the end of 2020.

“Delivery density has consistently been a challenge with e-commerce,” Subramaniam said. “We anticipate substantial density improvement and efficiency opportunities when all residential packages are sorted and delivered within the same ground network.

Shares of FedEx stock were down 1.87 percent as of 1:02 p.m. ET on Friday.