FedEx Express will funnel some packages to the company’s ground unit for residential delivery to improve efficiency as online shopping continues to grow.
The company said Friday that the change will begin next month in Greensboro, North Carolina.
FedEx Express currently uses its own vehicles for so-called last-mile delivery of packages that come off its airplanes. Company executives say they believe that giving those packages to FedEx Ground will reduce costs and increase the number of packages carried by drivers on their rounds, making them more efficient.
“This move makes residential deliveries more efficient by putting the right package in the right network at the right cost to serve our customers,” Chief Operating Officer Raj Subramaniam said.
The change will let FedEx Express focus on parcels shipped from one business to another and on premium online-shopping deliveries to consumers, Subramaniam said.