New branding!

TUT

Well-Known Member
Legal issues aside, it'd be risky to put that much of the operation in the hands of multiple contractors who are obligated to do absolutely nothing more than to fulfill the minimum requirements of their business agreements with FedEx. We've seen contractors who post here and appear to be stand-up guys who aren't going to do more for FedEx than they have to.

FedEx needs a greater degree of control over things than a contractor model would allow them to have.

I do agree with your premise here on that risk, but honestly I can't say for certain nor know what they do and what they might be thinking. But I understand your point completely. Again as a customer, I'd love one pickup and your people to be employees. For example I can be in a meeting with your team and when talking ground we have some issues that need sorted and I come to find out the problem cannot be handled because X isn't allowed to talk to Y directly because they aren't employees. That isn't an ideal "get the job done" state, sometimes teetering on being a deal breaker. I'll assume business as usual until we see more, I do understand how unifying the colors though gets people thinking.
 

It will be fine

Well-Known Member
I do agree with your premise here on that risk, but honestly I can't say for certain nor know what they do and what they might be thinking. But I understand your point completely. Again as a customer, I'd love one pickup and your people to be employees. For example I can be in a meeting with your team and when talking ground we have some issues that need sorted and I come to find out the problem cannot be handled because X isn't allowed to talk to Y directly because they aren't employees. That isn't an ideal "get the job done" state, sometimes teetering on being a deal breaker. I'll assume business as usual until we see more, I do understand how unifying the colors though gets people thinking.
You should get your ground contractors contact info. I have many customers that contact me directly. I'm much more likely to address issues if a customer brings them to me than if it goes through sales or local management.
 

bacha29

Well-Known Member
Not dollar for dollar, that's why FedEx trades Higher on the market dumb dumb!
A very good point Wall Street has pegged it's next years EPS at somewhere around 12 bucks and the share target as high as 206. That's a tall order to fill and rest assured X will find way to skirt the law or flat out ignore the law in order to make those numbers especially if there is a down turn in the economy . Given these facts what do Express grunts and G contractors now have in common? Answer: Assume nothing but be prepared for anything .
 

dmac1

Well-Known Member
It really does vary from route to route and station to station. There's just too many variables to give you a good ballpark figure. The majority of the freight is 2day and express saver. But running cycles to make commit times, two attempts for closed businesses, squeezing in lunch breaks, and on call ( some with one hour windows)and reg pick ups, then jamming back to the station for outbound to make the plane / truck can make a seemingly easy job very difficult and stressful. Rtb times also vary from station to station.
We also have first overnight- typically 8:00 or 10: am various priority time commits based on zip code and standard overnight. Business- either 3:00 or 4:30 depending on zip code. When we say there is too much control needed to make it work, believe us.


You still seem confused about control issues. In fact, besides the confusion you already have shown, now you are confusing customer demands with company control. There is a big difference between controlling hairstyle/length and making deliveries at the time the customer paid for. You really should read the governing laws if you are going to make statements about control issues.It is totally legal for a company to use contractors and tell them they need to meet customer demands.
 

dmac1

Well-Known Member
Fedex has completely eliminated the control issue by in effect making the contractors into delivery franchises.
??????????
So I can collect money directly from the consumer and allocate an agreed percent back to X. (Royalty) when does that start?

You've never collected from a customer????????????? Who collects the money doesn't matter. You still have a lot to learn.
 

MAKAVELI

Well-Known Member
You still seem confused about control issues. In fact, besides the confusion you already have shown, now you are confusing customer demands with company control. There is a big difference between controlling hairstyle/length and making deliveries at the time the customer paid for. You really should read the governing laws if you are going to make statements about control issues.It is totally legal for a company to use contractors and tell them they need to meet customer demands.
I'm not the one confused brotha. You are. FedEx has to have that control over the drivers not contractors. Which would make the drivers Fedex employees.
 

59 Dano

I just want to make friends!
Contractors will have to get it done with quantity of drivers if they can't with quality.

Which means that their expenses are going to be significantly higher for a service with margins that are significantly lower. IOW, they're going to have to make a larger investment to make less money.
 

It will be fine

Well-Known Member
I'm not the one confused brotha. You are. FedEx has to have that control over the drivers not contractors. Which would make the drivers Fedex employees.
I think you have a bit of Stockholm syndrome. You've been so micromanaged you think it's the only way to get results. Right now I have a contract that says business deliveries need to be made before 18:00, they can change that to 16:30 easily and it'll be up to me to figure out how to get that done everyday. They don't need any more control to get 2day and express saver delivered adequately.
 

MAKAVELI

Well-Known Member
I think you have a bit of Stockholm syndrome. You've been so micromanaged you think it's the only way to get results. Right now I have a contract that says business deliveries need to be made before 18:00, they can change that to 16:30 easily and it'll be up to me to figure out how to get that done everyday. They don't need any more control to get 2day and express saver delivered adequately.
I wasn't talking about just 2day and express saver. I'm talking about the whole express operation. Ttku;)
 

59 Dano

I just want to make friends!
Th

That argument is solid, but the margin continues to shrink, and liabilities keep going up, at some point X will decide that it's preservation of its brand and intense scrutiny of its operating arrangements will succumb to on going pressures.
You do know they can still make a LOT of money if they adapt.

Preservation of its brand and scrutiny of operating arrangements?? Hell, no one cares. Ground fills the need for something that is faster than the USPS, cheap, and trackable. People tend to understand what they're getting when they spend money on Ground and they're fine with that.
 

59 Dano

I just want to make friends!
I do agree with your premise here on that risk, but honestly I can't say for certain nor know what they do and what they might be thinking. But I understand your point completely. Again as a customer, I'd love one pickup and your people to be employees. For example I can be in a meeting with your team and when talking ground we have some issues that need sorted and I come to find out the problem cannot be handled because X isn't allowed to talk to Y directly because they aren't employees. That isn't an ideal "get the job done" state, sometimes teetering on being a deal breaker. I'll assume business as usual until we see more, I do understand how unifying the colors though gets people thinking.

They found that purple and orange was the pairing that carried the most recognition, not that such a simple reason is enough to stave off rampant speculation on this very forum.

I see your point, but money is the biggest issue and this arrangement keeps things cheap for the shipper and profitable for FedEx.
 

It will be fine

Well-Known Member
They found that purple and orange was the pairing that carried the most recognition, not that such a simple reason is enough to stave off rampant speculation on this very forum.

I see your point, but money is the biggest issue and this arrangement keeps things cheap for the shipper and profitable for FedEx.
I think we've all been lied to enough to be skeptical that this will just be a branding change. Why take on the cost to only add confusion to who can pick up and deliver which packages?
 

Cactus

Just telling it like it is
I think we've all been lied to enough to be skeptical that this will just be a branding change. Why take on the cost to only add confusion to who can pick up and deliver which packages?
And you still believe your running "your own business." Time to shed the rose colored glasses and stop worshiping the weasel.
 

dmac1

Well-Known Member
I'm not the one confused brotha. You are. FedEx has to have that control over the drivers not contractors. Which would make the drivers Fedex employees.

Fedex controls the contractor. It is the contractor who has to tell the drivers what, when, where, and how to deliver under the ISP model. Remember- we are talking about after the full transition to ISP.
 

dmac1

Well-Known Member
Which means that their expenses are going to be significantly higher for a service with margins that are significantly lower. IOW, they're going to have to make a larger investment to make less money.

Fedex may pay the contractor extra for express deliveries. They could pay twice as much as a ground package and still be cheaper than paying an express driver, supplying the truck, operating a seperate terminal, the training, HR, payroll, taxes, etc.
 

vantexan

Well-Known Member
Fedex may pay the contractor extra for express deliveries. They could pay twice as much as a ground package and still be cheaper than paying an express driver, supplying the truck, operating a seperate terminal, the training, HR, payroll, taxes, etc.
I bet said contractor won't tell his drivers he's getting twice as much.
 
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