FedEx completes shift of former Postal Service business, rebrands service

FedEx Corp. said Wednesday that it has completed the integration of its last-mile delivery operations formerly handled by the U.S. Postal Service, and has rebranded the service to FedEx Ground Economy from FedEx SmartPost.

Memphis, Tennessee-based FedEx has said for several years that it planned to divert its postal business into its own network. Initially, the transition was to be completed by the end of 2020. However, the impact of the COVID-19 pandemic on parcel deliveries pushed back the timetable.

Historically, FedEx would deliver millions of parcels deep into the postal infrastructure for the Postal Service to provide last-mile delivery to residences. FedEx changed its strategy in an effort to build package density in its business-to-consumer (B2C) ground delivery network and set the stage for seven-day-a-week deliveries, which it now offers.

At its peak, FedEx tendered about 3 million parcels per day to the Postal Service for last-mile deliveries.

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Sounds great! I hope UPS follows the same path!

Now if Amazon would deliver its parcels. The USPS might stand a chance of survival!