FedEx Cuts Express Network, UPS Partners With HubBox

by | Sep 19, 2019

2 min read


FedEx Plans to Downsize Express Network in an Attempt to Cut Costs

During their 2020 Q1 earnings call, FedEx revealed plans to cut its Express program by retiring multiple planes in its fleet, citing a declining demand for air cargo.

“The global economy continues to soften and we are taking steps to cut capacity,” CEO Fred Smith said during the call. According to Smith, these cuts are “driven by increasing trade tensions and policy uncertainty.” He believes that modernizing the Express fleet will lower costs due to “enhanced reliability, reduced maintenance costs, and improve[d] fuel efficiency.”

This announcement comes on the heels of FedEx’s decision not to renew their partnership with Amazon. Earlier this week, FedEx blamed the “loss of FedEx Ground business from a large customer” for their current economic situation. During the call, Smith confirmed that Amazon is that customer.


UPS Teams up With HubBox for Last-Mile Delivery

As e-commerce continues to grow exponentially year over year, retailers face increased pressure to offer a variety of quick, convenient shipping options to their customers.

In today’s world, busy consumers want deliveries made on their terms, even if that means having their packages delivered to a location outside their home. According to a recent survey, “one in five shoppers prefers an alternative delivery location to a home delivery.”

Because of this, UPS has partnered with HubBox to expand its Access Point network, and “create an easy-to-use and easy-to-implement application that makes UPS Access Point locations in the U.S. and Europe visible in the checkout process.” HubBox is easily integrated with most major e-commerce platforms like Shopify and Magento, allowing customers the option to select an Access Point delivery during checkout.

“We’re thrilled to be working with UPS to make the convenience of picking up packages at a UPS Access Point location even easier,” said Sam Jarvis, Founder and CEO at HubBox. “Combining our specialized software with UPS’s unrivalled transportation and logistics network means that e-tailers of all sizes can employ an easy and convenient local pickup solution offering speed, safety and simplicity.”


Topics: Customer Experience, FedEx, UPS