FedEx Move To 7-Day Ground Delivery Will Have Costs Before Revenue Gains - Benzinga
The boom in online buying is again forcing a big shipper to expand its service, and that's going to mean more cost.
FedEx Corporation announced on Thursday ground-parcel delivery unit FedEx Ground will add Sunday delivery, starting in January. The move comes just months after FedEx added Saturday delivery.
But it will cost money before it boosts the bottom line, analysts say, and FedEx competitor United Parcel Service, Inc. may have to match the move.
FedEx also said it will speed up its effort to move last-mile delivery into its own network, rather than outsourcing that final part of the delivery to the Postal Service.
The boom in online buying is again forcing a big shipper to expand its service, and that's going to mean more cost.
FedEx Corporation announced on Thursday ground-parcel delivery unit FedEx Ground will add Sunday delivery, starting in January. The move comes just months after FedEx added Saturday delivery.
But it will cost money before it boosts the bottom line, analysts say, and FedEx competitor United Parcel Service, Inc. may have to match the move.
FedEx also said it will speed up its effort to move last-mile delivery into its own network, rather than outsourcing that final part of the delivery to the Postal Service.
