While FedEx is further shrinking its Sunday delivery activities, Amazon is trying to boost fulfilment volumes by wooing other online merchants and UPS is extending surcharges on residential deliveries.
According to a memo to contractors performing the actual deliveries for the FedEx Ground unit, the company is to sharply reduce coverage of the US market from mid-March.
FedEx aims to achieve $3.7bn in savings in fiscal year 2023. With its low utilisation, the Sunday service is a prime candidate for cuts.