That makes no sense. The profit they make even with the lawsuits etc. are far more lucrative than what you suggest.
There are only 2 competitors. Supply and demand rules. X would have enjoyed a bigger share of the market by combining services creating density and efficiencies, while splitting the market. This does create money, now I will agree the IC model by its self is more profitable from a monetary perspective to some degree, however it has cost them with overall market share and intangibles like brand protection. That comes at a real cost.
Look, what will Fedex have to do to get everything it needs to satisfy all regulations, protect its brand, satisfy customer demands, allow X to utilize and deploy evolving technologies for the long term viability of the company.
I don't see how they can achieve everything above with the contractor model and not run into trouble with the law while protecting it's brand and remain competitive. Being competitive means more than just being cheaper.