FedEx Shares Rise On Plan To Maximize Residential Deliveries
Zacks Investment Research | Feb 09, 2020 09:30PM ET
With the exponential growth in e-commerce, FedEx Corporation (NYSE:FDX) plans to hand off some of its Express packages to its Ground unit for residential deliveries. This new strategy to integrate the two networks for delivery of selective day-definite residential Express shipments will initially be rolled out at Greensboro, NC in March. It will be extended to other markets in phases through the rest of the year.
FedEx shares, which have displayed a downtrend over the past year due to weakness at its primary revenue-generating segment, FedEx Express, as a result of the U.S.-China trade tensions, gained 4.7% at the close of business on Feb 7 following the above announcement on making “residential deliveries more efficient”.
The move not only aims to handle residential deliveries more competently but also to reduce costs. The expensive last-mile deliveries can be made cheaper by allowing the Express business hand off a fewer number of time-bound packages to the Ground unit for final delivery as that would lower the instances of a driver from both divisions visiting the same customer.
FedEx anticipates Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.