The Big Reveal

zeev

Well-Known Member
Amazon has the answer for rural areas using auto parts and flower delivery drivers to deliver in rural areas. Also door dash is picking up and delivering packages.
 

Cactus

Just telling it like it is
Having to quit Sundays was no doubt an enormous embarrassment public embarrassment for Raj and Fat Freddy. However is was worded in a way that would allow them to return to 7 days . Then again it still comes back to rural America where there is simply too many miles not enough freight . They'll be lucky if they can keep 6 day a week service out to rural America profitable. So don't be surprised if much of rural America goes back to 5 days a week.
Delivering things like an overnight letter to a rural town 40 miles out the way on a Saturday is just plain stupid and not to mention unprofitable and it’s been going on for years as an exercise in butt kissing shippers of all sorts.
 

59 Dano

I just want to make friends!
Goal posts aren’t moving. What are you missing here? People made money on contingency this peak. A lot of it.

The company no longer wants to pay it. It brings us back to where we were four months ago.

It’s always been about money. When contractors are well compensated, things go well. When the company takes all the money and hands it to stockholders, contractors lose interest in providing service
Four months ago the network was on the brink of collapse.

I know you guys want more money. No one denies that, but the whole Chicken Little spectacle was a bit much. A joke, really.
 

59 Dano

I just want to make friends!
@59 Dano why would Spencer Patton show up again? Know something we don’t?

I’d actually like to know where Fedex’s lawsuit stands. Haven’t heard anything about that.
Civil lawsuits tend to move at a glacial pace. I was making a joke about him. He's not doing anything.

Why don't you head over to Brentwood and get a taste of the reputation he's made for himself right there in his backyard?
 

59 Dano

I just want to make friends!
Amazon has the answer for rural areas using auto parts and flower delivery drivers to deliver in rural areas. Also door dash is picking up and delivering packages.
I thought Amazon was going to take all of our freight from us 2 or 3 years ago.
 

bbsam

Moderator
Staff member
Four months ago the network was on the brink of collapse.

I know you guys want more money. No one denies that, but the whole Chicken Little spectacle was a bit much. A joke, really.
No. Not a joke.

It’s a different dynamic as contractors. If we can’t pay the bills it not the same as simply not getting the new BMW. More money isn’t a luxury. Without it, contractors fail and the model falls apart.

What happened the last few months? The company paid out a lot in contingency. Now they aren’t. They’re trying to pull more out for investors.

It’s not hard to figure out. They want to call it “efficiency” but it’s just a money grab.
 

59 Dano

I just want to make friends!
Delivering things like an overnight letter to a rural town 40 miles out the way on a Saturday is just plain stupid and not to mention unprofitable and it’s been going on for years as an exercise in butt kissing shippers of all sorts.
Cactus showing off that MBA from University of Chicago Booth School of Business.
 

MAKAVELI

Well-Known Member
Or perhaps it served a purpose and now it's no longer needed and it makes no sense to continue it in many areas.
Or perhaps it was never needed and cost much more than what it produced. It was a gimmick sold to shippers and stockholders.
 

59 Dano

I just want to make friends!
No. Not a joke.

It’s a different dynamic as contractors. If we can’t pay the bills it not the same as simply not getting the new BMW. More money isn’t a luxury. Without it, contractors fail and the model falls apart.

What happened the last few months? The company paid out a lot in contingency. Now they aren’t. They’re trying to pull more out for investors.

It’s not hard to figure out. They want to call it “efficiency” but it’s just a money grab.
You guys said that the surge in volume was going to overwhelm the infrastructure when FedEx and UPS were already saying that volumes were going to be lighter. You guys weren't just wrong about that, it showed that you were either making stuff up or just had no idea what you were talking about.

Either way, I'm sure there are plenty of contractors who have no business being contractors. They need to realize that. Plenty of other contractors are doing fine.
 

59 Dano

I just want to make friends!
Or perhaps it was never needed and cost much more than what it produced. It was a gimmick sold to shippers and stockholders.
LOL. I'm sure it didn't come in handy during that 2 year spike of unprecedented volume and revenue.

And if you remember -clearly you don't- there has been nary a peep about it here other than the initial announcement in 2019. Must have been a colossal failure for no one to say anything about it.
 

MAKAVELI

Well-Known Member
LOL. I'm sure it didn't come in handy during that 2 year spike of unprecedented volume and revenue.

And if you remember -clearly you don't- there has been nary a peep about it here other than the initial announcement in 2019. Must have been a colossal failure for no one to say anything about it.
It was costing both FedEx and contractors $. That's why they ended it. Lol
 

It will be fine

Well-Known Member
You guys said that the surge in volume was going to overwhelm the infrastructure when FedEx and UPS were already saying that volumes were going to be lighter. You guys weren't just wrong about that, it showed that you were either making stuff up or just had no idea what you were talking about.

Either way, I'm sure there are plenty of contractors who have no business being contractors. They need to realize that. Plenty of other contractors are doing fine.
For some reason you are pretending FedEx made no adjustments between Sept and through peak in response to Spencer. The sch. K was increased more than last year to get contractors through peak. They even adjusted it after the initial offers to put more money in contractor operations. They paid a ton in contingency. All during the slowest peak in my memory.

So after they dumped a bunch of cash into contractor operations you’re acting like the system was great with no issues. It’s disingenuous at best. There were problems, they put a bandaid on it. The problems are still there. That’s why they are dumping more Sunday coverage and have now changed their minds on how big contractors can be. They want to squeeze out the small ones and have larger contractors that can survive shrinking margins.
 

bacha29

Well-Known Member
No. Not a joke.

It’s a different dynamic as contractors. If we can’t pay the bills it not the same as simply not getting the new BMW. More money isn’t a luxury. Without it, contractors fail and the model falls apart.

What happened the last few months? The company paid out a lot in contingency. Now they aren’t. They’re trying to pull more out for investors.

It’s not hard to figure out. They want to call it “efficiency” but it’s just a money grab.
It would appear that Dano is struggling to understand the fact that an FXG contractor is only as good as the economic vitality of the area he services. The problem is people who run that company are so city minded that they assume that what they see looking out from their corner office window and Dano out his mother's cellar window is what the entire nation looks like. The nation as whole is still quite rural. You have millions of people crowded along the coasts , lakes and rivers but there is still an awful lot of empty miles with not a lot of people nearby and many of them living on modest incomes with little to no discretionary income.

If you recall Fat Freddy dumped his rural RD junk onto that RD mail carrier. But that was only until the mental giant he is decided to try to haul it himself and dumped it onto his contractors at reduced rates. Well, we see what's happening. Contractors simply throwing up their hands and walking away. You can't sell a non binding one year contract that is steadily becoming less and less profitable. So it's simply...."hasta la vista....baby"
 

lilwizbiz

Well-Known Member
I thought Amazon was going to take all of our freight from us 2 or 3 years ago.
Lmao these guys just announced 18k layoffs, Jesus. Meanwhile FedEx has announced 300 VOLUNTARY layoffs with a lump sum pay when they come back in 3 months I believe. Amazon will never ever be able to compete with FedEx or UPS. They got a monopoly on this industry
 

lilwizbiz

Well-Known Member
Back down to pre covid levels. But UPS isn't the one crying that the sky is falling. Obviously UPS planned and executed much better than FedEx for a drop in volume.
I wouldn’t say back down to pre covid levels tho. My station still running double the volume on an average day compared to pre covid. Even during this recession it’s still at least double the volume. This is the “new normal” from now on idk why y’all just refuse to believe that. I mean it’s been damn near 3 years lol this volume isn’t going anywhere
 
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