FedEx cutting out deliveries in some markets on Sundays

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 making a city delivery

FedEx Corp. announced plans to cut back on Sunday delivery. (iStock / iStock)

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.

FedEx worker getting packages from a truck

A FedEx Express courier prepares the numerous packages inside the delivery truck parked on the street. (Budrul Chukrut/SOPA Images/LightRocket via Getty Images/Getty Images)

“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.

FedEx truck on the highway

FedEx Ground truck driving on an interstate. (iStock)

ticker Security Last Change Change %
fdx FEDEX CORP. 227.66 0.00 0.00%

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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.

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