FedEx Ground also began restricting capacity for the service, which was eventually rebranded as Ground Economy. The move had the effect of pushing shippers to a higher-cost service known as FedEx (NYSE: FDX) Home Delivery. In addition, the unit has struggled to achieve service consistency with Ground Economy, according to Nate Skiver, founder and president of LPF Consulting LLC.
“FedEx has found its way and it is now competing again on price,” said Dean Maciuba, managing partner, U.S. at Crossroads Parcel Consulting and a longtime FedEx executive. “But it’s too late. The damage has been done.”