New York (CNN Business)FedEx's Ground service, which primarily serves rural areas and around 15% of US homes, will discontinue delivering on Sundays.
Sunday, August 21, is the new date, as FedEx (FDX) stated on Friday.
In response to "the exponential expansion of e-commerce," the corporation had increased Sunday delivery to 95% of US homes during the pandemic, according to a statement from FedEx. However, it is reducing the service to 80 percent of residences "since economic realities have changed."
The majority of the company's online purchase shipments are handled by FedEx Ground, but it's a crowded market with competition from UPS, the US Postal Service, and Amazon's (AMZN) in-house delivery service (UPS).FedEx Ground had already started reducing some of the less urgent, more affordable "economy" shipments to houses before Friday's announcement.Despite difficulties in that sector of the economy and a decline in FedEx Ground shipments, the unit's sales increased in the most recent quarter, partly because shippers were charged an extra premium for gasoline. Because of the record-high cost of diesel, the majority of other trucking companies have also implemented fuel surcharges.
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