Last month, we reported that the coronavirus has likely accelerated e-commerce growth by five years. Well, now with the holiday season just around the corner, and Covid still keeping store traffic down, carriers are preparing for another onslaught of shipments. Buckle your seatbelts.
Last week, FedEx announced that they would hire 70,000 workers to help with the holiday blitz this year. In comparison, the company hired 55,000 workers to help with holiday shipping last year. The new workers will mostly assist with FedEx Ground operations.
FedEx will also expand Sunday residential deliveries to nearly 95% of the population.
Raj Subramaniam, president and CEO of FedEx, said last week that he expects an ‘unprecedented peak holiday shipping season’ this year.
FedEx’s primary rival, UPS is expected to announce its own holiday hiring this week. UPS hired 39,000 workers in the second quarter of this year.
E-commerce has been a big story this year. Commerce Department data showed e-commerce growth increasing by 37% in the second quarter, bringing revenue to $200 billion. Walmart reported that online sales for the company rose 97% in Q2. The Wall Street Journal today reports that Shopify, an online shopping platform is now worth $117 billion. The rise in online shopping prompted UPS, FedEx, and even the Post Office to set new peak surcharges for shipping during the holiday season.