2M Last-mile deliveries by the Postal Service® will be made by FedEx Ground

Last Month, FedEx announced it will deliver seven days per week for the majority of the U.S. population starting in January 2020. The company also announced its FedEx SmartPost service, which uses the Postal Service® for final delivery for nearly two million packages, will be integrated with its FedEx Ground Standard operations.

The question is: What impact will this have on the Postal Service™?

According to a statement by President and CEO Raj Subramaniam in the company’s press release, investments in “capacity, technology and automation” have put FedEx in a position to be able to continue to increase its ground market share. Said Subramaniam, “Expanding our operations to include Sunday residential deliveries further increases our ability to meet the demands of e-commerce shippers and online shoppers.”

About 20 percent of the FedEx Smart Post packages have already been integrated with FedEx Ground. This integration will be “significantly accelerated” this fall and by the end of 2020, nearly all FedEx Smart Post packages will use FedEx Ground for final delivery.

Lastly, the release stated that FedEx has made “significant operational changes” to better handle the safe delivery of oversized and heavy packages such as TVs, mattresses, and furniture. Large packages make up more than 10 percent of FedEx’s ground volume and, according to the press release, this is expected to grow.  This growth might be because large packages often mean extra fees for FedEx.

FedEx’s changes make the company “nimble and responsive to the changing needs of e-commerce” said Subramaniam. “Each one advances the company’s commitment to continued superior service and increased efficiency in handling all e-commerce packages – small and large – within one ground network, seven days a week, year-round.”

Some see this announcement as a response to previous announcements made by competitors. For example, Amazon has one-day shipping for Prime members and UPS has expanded Saturday pickup and delivery.

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