Companies

FedEx Office to shut SameDay City service

Feb 14, 2023 United States

The shipping company confirmed that it will end the service that provides same-day deliveries in large metro areas from the 31st of March. In face of declining demand, the goal is to reduce costs

A spokesperson of the US-based company confirmed in an email to Supply Chain Dive that the cancellation of this service will enable prioritizing "several other opportunities for growth". Workers impacted by this decision will be offered severance packages, albeit being encouraged to apply to other positions within FedEx. The same-day delivery will still be available through FedEx SameDay US and FedEx SameDay Freight.

The formerly advertised "fastest local shipping option" for customers in large metro areas covered 1 800 cities in 30 commercial markets since 2017. It was mainly directed at businesses in healthcare, automotive or other sectors that required quick delivery of critical supplies, with pickup and delivery occurring in as little as two hours.

"FedEx Office remains committed to giving small and medium business owners, large commercial customers, and consumers convenient access to expert printing and packing, as well as shipping and returns provided by FedEx Ground and FedEx Express", the spokesperson added in the email.

FedEx is making broad cuts throughout operations amidst declining volumes in an uncertain economic backdrop. Since June 2022, FedEx’s US workforce has been reduced by more than 12 000 positions through a mixture of attrition and headcount reductions. More recently, the delivery company announced that it would cut 10% of its officer and director team looking to become “a more efficient, agile organization”.

Source: supplychaindive.com

Image Credits: fedex.com

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