FedEx Corp. (NYSE: FDX) on Wednesday announced that it has completed the integration of its last mile delivery operations, previously managed by the U.S. Postal Service, and renamed the FedEx Ground Economy service from FedEx SmartPost.
FedEx, based in Memphis, Tennessee, has said for several years that it plans to divert its postal business to its own network. Initially, the transition was expected to be completed by the end of 2020. However, the impact of the COVID-19 pandemic on package deliveries has pushed back the schedule.
Historically, FedEx delivered millions of packages deep within the postal infrastructure for the Postal Service to ensure last mile delivery to homes. FedEx has changed its strategy to increase package density in its business-to-consumer (B2C) ground delivery network and set the stage for the seven-day-a-week deliveries it now offers.
At its peak, FedEx offered approximately 3 million packages per day to the Postal Service for last mile deliveries.
FedEx Economy contract-only service offers deliveries within two to seven business days depending on the length of the journey to the destination.