FedEx said on Tuesday it was further cutting its Sunday FedEx Ground delivery service in March to adjust to consumer demands.
This service level change is in addition to the ones FedEx already made last July when it cut Sunday delivery in select rural markets.
But even after tweaking its Sunday service last year, many of its FedEx Ground contractors complained in August that it still wasn’t enough because running the Sunday routes continues to be unprofitable for many of them.
The Sunday delivery issue was one of the most significant complaints raised at a FedEx Ground contractor conference in Las Vegas last August, organized by Spencer Patton, founder of Route Consultants.
Patton had been critical about how FedEx manages its partnership with delivery contractors. But his advocacy resulted in the carrier canceling his delivery contract believing he was unfairly targeting FedEx, terminating about 225 of his routes.
Canceling his contract may also have chilled other contractors from continuing to speak up with the holiday season looming, a busy and generally more profitable time of the year for them.
Still, the Sunday delivery issue remained, and now FedEx is planning further service adjustments to address this concern raised by contractors.
“This adjustment will enable FedEx Ground to boost efficiencies while maintaining a competitive advantage in weekend coverage,” FedEx said in a statement.
There is no word yet on which Sunday routes will be cut, but it appears it might include more than just rural routes the carrier trimmed in the first go-around.
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