FedEx Shuts Down SameDay City
Since then, FedEx has been hard at work trying to turn things around. It cut Sunday deliveries for 15% of its customer base and announced Network 2.0, a $2 billion plan to increase efficiency by boosting Freight, Ground, and Express collaboration. Once fully implemented, Network 2.0 will cut millions of driving miles annually.
Even more recently, the carrier announced staff cuts, and effective March 31, 2023, FedEx will retire its SameDay City services after a decade of operation. In this blog post, we'll talk about what SameDay City delivery is, what the end of the service means for you, and how to respond when carriers change their service offerings.
What is SameDay City?
If your business relies on fast deliveries to local customers, you've probably integrated SameDay City delivery into your business plan. Pharmaceutical companies, car repair businesses, and law offices rely on the same-day delivery of important goods. FedEx offers this SameDay City for customers within 45 miles in select major US metro areas. Operating seven days per week, 365 days per year, this service can get your package delivered in less than two hours in some cases.Why did FedEx cut this service?
In a February 1, 2023 email to FedEx team members, the carrier announced organizational changes, sharing that to "create the world's most flexible, efficient, and intelligent supply chain for our customers," "positions have been eliminated as we reduce the size of our officer and director team by more than 10% and consolidate some teams and functions."This move is in line with its Network 2.0 strategy of consolidation— from driving routes to teams and functions. In his email to FedEx employees, president and CEO Raj Subramaniam said the company "can be stronger by better aligning the size of our network with customer demand." He believes this strategy will support FedEx's "ability to continue driving the world forward for the next 50 years and beyond."