FedEx news for Tuesday about how the company plans to handle Amazon (NASDAQ:AMZN) has FDX stock up.
FedEx (NYSE:FDX) is planning to deal with the threat that Amazon presents with its growing logistics efforts. In order to better combat the retail giant, the company is going to start doing more business on the weekends.
FedEx will specifically be taking care of deliveries and pickups over the weekend. The idea here is that the additional offering will allow it to better compete against Amazon, which is using third-party delivery systems outside of FedDex.
Here’s the thing about this FedEx news, the company still wants to save as much money as possible. What that means is that it won’t be using its normal drivers to complete pickup and deliveries on the weekends.
Instead of its normal crew, FedEx will be bringing in lower paid workers to handle the weekend shift. This will keep its costs down as this will mostly be residential work, which is more expensive than business deliveries and pickups, reports Fox Business.
Amazon has been pushing to create more businesses that it can work with for deliveries. The company even has a special offer for its own employees. This allows them to stop working for it and instead create their own delivery business. AMZN is also willing to fund up to $10,000 in startup costs for the business to help build its logistics network.
FDX stock was up 1% as of Tuesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.