FedEx Corp is cutting back on Sunday deliveries in some low-density, rural US 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 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 US 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.
“We accelerated the rollout of Sunday residential delivery coverage to nearly 95% of the US 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.
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At least two brokerage firms had cut their target price on FedEx’s stock earlier this month.
Reuters contributed to this report.