Inside Logistics

FedEx modifying last-mile parcel policies

FedEx Express in the U.S. will be transferring certain parcels to FedEx Ground


February 10, 2020
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MEMPHIS, Tenn. – FedEx Express in the U.S. will be transferring certain parcels to FedEx Ground starting in March in an effort to cut the cost of residential deliveries. The

FedEx Express packages will be selected for delivery by FedEx Ground if they are residential deliveries for which FedEx Ground can meet the service commitment. The company will begin rolling this out in Greensboro, N.C. and will include other markets in phases throughout the remainder of the year.

“This move makes residential deliveries more efficient by putting the right package in the right network at the right cost to serve our customers,” said Raj Subramaniam, president and COO, FedEx Corp.

“We continue to flex our network to stay ahead of e-commerce growth, and that includes adjustments to better handle the demand for residential deliveries while lowering our cost to serve.”

By optimizing last-mile residential deliveries, FedEx will also help improve safety and sustainability by reducing the number of delivery vehicles in neighborhoods.

The company says it will continue to invest in developing new last-mile delivery technology.