FedEx Ground to deliver to homes on Sunday: ‘Every day is now a delivery day’January 23, 2020
FedEx Ground is now delivering to homes on Sundays all year long, paving the way for faster shipping, FedEx announced Wednesday.
The expansion applies to residences in and around major U.S. metro areas, covering 188 million people in 7,700 cities and towns.
FedEx Ground originally announced the expansion of its FedEx Home Delivery business in May, citing the growth in online shopping. A few months later, UPS announced it would add Sunday delivery, too.
Customers have come to expect Sunday delivery, FedEx COO Raj Subramaniam said in a statement.
“Every day is now a delivery day at FedEx,” he said.
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All aspects of FedEx Ground’s operation needed to be prepared to have a successful year-round Sunday delivery launch, said Patrick Fitzgerald, senior vice president for integrated marketing and communications at FedEx.
“Fortunately, we have made such significant investments not only in facilities, but in technology that allows us to make this happen,” he said. “From there, it was really just working with our service providers and partners and being prepared to turn this on.”
FedEx Ground had already been delivering seven days a week during the holidays to handle the influx of online orders. Its home delivery business saw a 42% increase in package volume from the previous December and delivered nearly 8 million Sunday packages between Black Friday and Christmas Eve, FedEx said.
The added delivery day speeds up most FedEx Ground shipping lanes by one or two days, FedEx said.
The logistics giant often touts its speed advantage over UPS, with a May company analysis saying 28% of FedEx Ground lanes are faster than UPS. The analysis said 3.3% of UPS lanes are faster.
Faster deliveries and Sunday service don’t just benefit residential customers, Chief Marketing Officer Brie Carere said in December’s earnings call. Premium business-to-business sectors like health care and perishable goods also value the expansion, she said.
The Sunday expansion has contributed to a profit squeeze at FedEx Ground, however.
In December, FedEx executives blamed year-round Sunday delivery preparations as part of the reason why Ground quarterly profits fell more than 40%. CEO Fred Smith said the company “probably underestimated” the cost of doing so.
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