FedEx will soon offer “zero-rating” on shipping and handling fees, according to an announcement today.
The move comes after several years of criticism that FedEx’s pricing system is unfair and often overcharges customers.
FedEx is the only airline to offer a “zero rate” option on shipping, but it is a rare example of a major airline going that far.
The company said the move is intended to increase efficiency for customers and “reduce the cost of shipping to the customer.”
The move was first reported by The Associated Press.
The U.S. Postal Service will offer its own zero-rating program in early 2018.
FedEx said it was “proud” to be a leader in the shipping industry, which has a $1.5 trillion industry and accounts for about 40 percent of the U.K.’s economy.
“We are not a zero-rate carrier, and we are committed to delivering excellent service to our customers every day,” FedEx spokeswoman Jocelyn Friese said in a statement.
“This is a step in the right direction to better align the pricing model for FedEx with other carriers and help ensure that our customers receive the best value and value at the lowest possible cost.”
FedEx said today that it will begin charging for items like FedEx signature cards, FedEx bags, FedEx Priority mail, FedEx Express mail and FedEx Business Class items, among others.
It will also begin charging a $5 “fractional” fee for items shipped within Canada and the United Kingdom.
FedEx says that if a customer does not have an address on file with the carrier and the customer has a physical address, FedEx will “discount” the postage by 50 percent.
The airline says it is working with local transit providers to expand the service to more cities.
FedEx CEO Richard Anderson told investors in a conference call earlier this year that the service is “going to be the biggest change” in FedEx’s delivery business in 10 years.
FedEx plans to open 20 new U.C. San Diego hubs in 2019 and have expanded its fleet of more than 1,100 aircraft.