Last year, FedEx had a very bad, terrible, no-good day. Their preliminary earnings report for the quarter ending on August 31 was much worse than expected, prompting a one-day 21% drop in the value of the carrier’s stock.
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.
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.
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.”
SameDay City may no longer operate after March 31, but the carrier offers alternative shipping options for same-day deliveries. FedEx SameDay US will deliver envelopes and packages up to 150 pounds, while FedEx SameDay Freight will deliver palletized freight or multiple packages bound together over 151 pounds.
You’ll need a Plan B before March 31 if you rely on SameDay City shipping services to transfer important parcels. Are you prepared to negotiate the best rates for these additional services?
ShipRx can help you renegotiate your contract to make sure you’re getting the best shipping options at the lowest possible rate, so you can continue delivering excellent customer service without interruption. Get in touch with us today for a free contract evaluation.
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