FedEx to Make Sunday Home Deliveries!

Well, we knew it wouldn’t be long before Seven day a week package delivery services would become the “new norm.”  Paul Ziobro, writing for the Wall Street Journal reports that FedEx will make that very bold move starting in January of 2020, right after the peak holiday shipping season.

FedEx president and COO, Raj Subramaniam said in an interview, “Online shopping is seven days a week.  So there is increasing demand from online shoppers and e-commerce shippers for seven-day service.” He did not however say whether FedEx plans to add staff to operate these Sunday deliveries, but we suspect that will become a necessary by-product of this bold Sunday delivery plan.  

Also worthy of noting is the fact that FedEx, at least at this point in time, states that they will not charge shippers an extra fee for making these Sunday home deliveries.  FedEx also does not currently charge extra for their Saturday home delivery services.

This Sunday delivery plan will also result in FedEx delivering less packages through their Smart Post hybrid delivery product with the US Postal Service for last mile delivery.  FedEx will now be making these deliveries themselves. FedEx’ goal is obviously to continue to build delivery density to reduce operating costs which is music to the ears of any freight carrier.

So, what will the impact of this change be on the US Postal Service?  FedEx estimates they will be taking approximately 2 Million packages daily out of the USPS delivery network and that will surely have a negative financial impact on the US Postal Service.  So what else is new; more negative financial news for the USPS.

As FedEx makes this Sunday delivery announcement, we believe UPS cannot be far behind in making a similar announcement regarding Sunday delivery services, so stay tuned for that.  And when UPS does make that announcement, what further negative financial impact will that decision have on the US Postal Service? Or might we suggest that the US Postal Service become more aggressive in direct solicitations with online retailers for more direct delivery business and truly compete head to head with the big boys.