Schneider Shuts Down First to Final Mile Delivery Due to ‘Poor Operating Performance’

Schneider National is shuttering its First to Final Mile (FTFM) service due to the poor operating performance. The FTFM service handles deliveries of home goods and bulky items. The shutdown is expected to be completed by Dec. 31, 2019. Large last-mile deliveries, also known as big and bulky, have become more prominent in recent years as large items like furniture and appliances are sold online and need to be delivered to customers’ homes. Bulky delivery services have been an area of interest for multiple transportation providers because of this growth. In 2016, Schneider acquired two last-mile companies to support furniture and oversized goods deliveries, according to the Wall Street Journal. Earlier this year, J.B. Hunt acquired Cory 1st Choice Home Delivery for $100 million to get into this line of business. It’s also something retailers had to consider when Amazon opened a warehouse in 2017 that was specialized for these large items. But these signs of a strong market weren’t enough for Schneider, which will lay off 85 workers as a result of closing the FTFM program, according to the Green Bay Press Gazette. The FTFM program resulted in large losses for Schneider: $13 million in the first quarter, $13.4 million in the second quarter and an estimated $9 million in the third quarter.
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