Is FedEx Scrambling for ideas?

[It will be fine]

When contractors failed last year, the share price dropped. That’s history. It’s a baseline. If contractors fail this time, what does history suggest will happen?

Maybe they’ve learned from last year. Maybe they haven’t. But as FedEx said in their own press release, this is far bigger than anything they’ve tried before.

Raj, John Smith, and all the others have their careers on the line. It’s all them. They have to get it right and they know what it took to get it right. Money. Lots of money. One way is smarter and cheaper than the other but neither is cheap.

I don’t think it would even take that much money. If I got the rates I was getting 4 years ago I’d be sitting pretty well. They just have to stop cutting the rates they pay us. I don’t know what they do with all the money they get from raising their rates every year, there’s only so much cocaine.

 

[dezguy]

I don’t think it would even take that much money. If I got the rates I was getting 4 years ago I’d be sitting pretty well. They just have to stop cutting the rates they pay us. I don’t know what they do with all the money they get from raising their rates every year, there’s only so much cocaine.

You're not factoring in the hookers.

 

[bbsam]

there’s only so much cocaine.

That, sir, is blasphemy!!!

 

[bbsam]

You're not factoring in the hookers.

“Hookers and blow” is the phrase. Either by itself is pathetic. Together, a party!!

 

[MAKAVELI]

I don’t think it would even take that much money. If I got the rates I was getting 4 years ago I’d be sitting pretty well. They just have to stop cutting the rates they pay us. I don’t know what they do with all the money they get from raising their rates every year, there’s only so much cocaine.

It wouldn't look so bad if they actually did use it on blow and hookers. Instead they wasted it on Kinkos, TNT, RESPONSE, Estar, etc.

 

[yadig]

FedEx loves hungry employees or employees in deep debt, you keep showing up to work. It’s been their way for years now and it’s the contractors turn. Have you ever heard the saying “dangling a carrot in front of you”? That’s gonna be the norm with promises of change.

 

[bacha29]

It wouldn't look so bad if they actually did use it on blow and hookers. Instead they wasted it on Kinkos, TNT, RESPONSE, Estar, etc.

Don't forget the crypto.

 

[bacha29]

When contractors failed last year, the share price dropped. That’s history. It’s a baseline. If contractors fail this time, what does history suggest will happen?

Maybe they’ve learned from last year. Maybe they haven’t. But as FedEx said in their own press release, this is far bigger than anything they’ve tried before.

Raj, John Smith, and all the others have their careers on the line. It’s all them. They have to get it right and they know what it took to get it right. Money. Lots of money. One way is smarter and cheaper than the other but neither is cheap.

On the heels of the announcement there was a little bit of a stock price bump up, But, if you noticed it has been slowly falling back down.
Now trades at 19X earnings. Not a real favorable P/E ratio and it does have some debt..
Given the accelerated pace by which they are converting it would appear that there is also an accelerated sense of urgency.
Whether it's a case where they want to get as much done as possible before peak or is it in preparation for a pretty good global recession?

 

[BrownFlush]

It wouldn't look so bad if they actually did use it on blow and hookers. Instead they wasted it on Kinkos, TNT, RESPONSE, Estar, etc.

I knew you were union man, Tupac.

 

[bbsam]

On the heels of the announcement there was a little bit of a stock price bump up, But, if you noticed it has been slowly falling back down.
Now trades at 19X earnings. Not a real favorable P/E ratio and it does have some debt..
Given the accelerated pace by which they are converting it would appear that there is also an accelerated sense of urgency.
Whether it's a case where they want to get as much done as possible before peak or is it in preparation for a pretty good global recession?

It could simply be that every day that goes by they are sinking millions into an opco that doesn’t need to be spent.

Facebook group has areas already taking on Express volume and others being notified of the same in May and July.

I’m not usually complimentary of FedEx and this may all be foolishly ambitious, but I’m impressed by the “damn the torpedoes” approach. I didn’t see that coming.

 

[bbsam]

Only so much money to go around. Will they cave to the demands of the shareholders and short change you contractors? Past history seems to indicate that this is the direction they'll go in.

Not really. Think of how much money they spent on contingency last year. Oh, they don’t post the number. That’s far too embarrassing. But it’s nothing compared to what they’ll save in slashing Express to the bone. Lots of money to go around.

 

[bbsam]

I don’t think it would even take that much money. If I got the rates I was getting 4 years ago I’d be sitting pretty well. They just have to stop cutting the rates they pay us. I don’t know what they do with all the money they get from raising their rates every year, there’s only so much cocaine.

People like you are infuriating. I’m trying to push the rates up and there you are, “hi Raj, yeah, no, just a little more will be fine. $1 a stop more? Yeah. That’s good. Thanks! Enjoy the hookers and blow!”

 

[It will be fine]

People like you are infuriating. I’m trying to push the rates up and there you are, “hi Raj, yeah, no, just a little more will be fine. $1 a stop more? Yeah. That’s good. Thanks! Enjoy the hookers and blow!”

I’m just being realistic. They aren’t going to slash costs and turn around and give it to us. The point is for them to keep all the savings. Sure I’d like more but I don’t see it happening. If the number of abandoned contracts this year hasn’t forced them to change course not much will.

 

[MAKAVELI]

It could simply be that every day that goes by they are sinking millions into an opco that doesn’t need to be spent.

Facebook group has areas already taking on Express volume and others being notified of the same in May and July.

I’m not usually complimentary of FedEx and this may all be foolishly ambitious, but I’m impressed by the “damn the torpedoes” approach. I didn’t see that coming.

They are all small rural stations. Not one metro area. Not impressive at all and the ones in Minnesota are failing bad.

 

[MAKAVELI]

Not really. Think of how much money they spent on contingency last year. Oh, they don’t post the number. That’s far too embarrassing. But it’s nothing compared to what they’ll save in slashing Express to the bone. Lots of money to go around.

They won't be saving anything. Just watch.

 

[bbsam]

I’m just being realistic. They aren’t going to slash costs and turn around and give it to us. The point is for them to keep all the savings. Sure I’d like more but I don’t see it happening. If the number of abandoned contracts this year hasn’t forced them to change course not much will.

My comment was mostly in jest. But I agree they will hold onto everything they possibly can. But I think they will open up out of necessity. They now have more eggs in this basket. Failure would be devastating.

 

[bbsam]

They are all small rural stations. Not one metro area. Not impressive at all and the ones in Minnesota are failing bad.

Ok. So we’re in agreement that the thing you said would ever happen is now happening? That Ground would never take significant parts of Express? Good.

Now why is it that you believe Ground may do so I. Rural areas but not in urban? Why would they not be able to scale up in those cases?

 

[It will be fine]

They are all small rural stations. Not one metro area. Not impressive at all and the ones in Minnesota are failing bad.

Where are you getting your info that MN is failing badly? I haven’t seen anyone from that area posting on any site.

 

[UnionStrong]

It could simply be that every day that goes by they are sinking millions into an opco that doesn’t need to be spent.

Facebook group has areas already taking on Express volume and others being notified of the same in May and July.

I’m not usually complimentary of FedEx and this may all be foolishly ambitious, but I’m impressed by the “damn the torpedoes” approach. I didn’t see that coming.

Last gasp

 

[purplelife]

Where are you getting your info that MN is failing badly? I haven’t seen anyone from that area posting on any site.

Yeah rural stations in MN are not failing.