Ups makes twice the profit on each pkg then fedex, isn’t that the end goal for fedex?
The Express employee massacre continues.
- Thread starter thedownhillEXPRESS
- Start date
Gone fishin
Well-Known Member
That guy said it , how would I know. Weird that the contractor is selling all his rts and trucks tho after successful years
59 Dano
I just want to make friends!
Tell me why FedEx would make more money by ditching the contractor model.
59 Dano
I just want to make friends!
I seriously doubt that FedEx will keep that many company drivers around especially not in collocation buildings where contractor’s drivers are delivering pools and mattresses for a fraction of what the company drivers make.
They’d have professional drivers that give a crap. I know the company wants to say driver turnover is the contractor’s problem, but we know from accidents, claims, and general perception that that’s not the case. A revolving door of drivers is bad. A revolving door of contractors is far worse.
Gone fishin
Well-Known Member
Well when it comes down to it you , me and everyone on this board has no idea what’s going to happen. We’re all just stating our opinion on what should happen
How many years have we had the contractor model, they’ve proven they have no clue how to run it this way
Bingo!!! You’d think fedex would make more per pkg with all the cheap labor. The number one question I get from customers is what happened to fedex. Fedex could be the next Kodak.
more likely Coleman after the take over
59 Dano
I just want to make friends!
That's why I said to preserve service on higher margin service offerings. Ultra cheap deferred EOD residential freight? Nope.
Why do you think they're keeping any around? The primary reason is to preserve service that would be too difficult or impossible for Ground to make. The second reason is to help put out fires if Ground has issues in that location.
59 Dano
I just want to make friends!
Oh, I agree that a more stable workforce is preferred. No doubt.
But let's say FedEx goes all-employee and no contractors. Does the increase in expenses create additional revenue? No. Does it maintain or increase margins? No. Does it offer any bottom line benefit at all? No.
59 Dano
I just want to make friends!
Everyone seems certain that an all-employee model would increase FedEx profits significantly, but no one can explain how that would work. Go figure!How many years have we had the contractor model, they’ve proven they have no clue how to run it this way
As for the contractor model, how many years have we had it and its margins were much higher than those of Express?
MAKAVELI
Well-Known Member
How? Increase in productivity, service, quality control, safety, customer retention and acquisition, etc.,etc......
Spoken like a true upper
who thinks the driver in the truck, face to face with the customer, with the package in his hands, has nothing to do with profit. It’s the only thing that actually brings in profit. Having them be company employees allows the company to actually maintain its standards.
We’ve seen how far stock prices can fall. If they do not get this right, and the stock tanks again, how do they reassure investors that they have a workable plan? That they are the right people to see it through? And if the contractor model fails, who’s going to come to work as a company courier knowing that the company is eyeballing a contractor model? Where’s the trust going to be?
They’ve had massive failures rolling out programs. They cannot afford to get this wrong. Unfortunately, I’m guessing they haven’t looked far enough ahead. They see billions in savings and nothing more. I’m not sure they’ve learned from mistakes.
It will be fine
Well-Known Member
I’m not sure they believe they’ve made any mistake.
Guitarman01
Well-Known Member
UPS specializes in ground PKG delivery and consistently outperforms FedEx in terms of revenue and service despite paying it's employees almost double what an express driver makes let alone a contracted one. The inefficiency was FedEx's fault to begin with, not the employees. One truck, one area, one service would obviously cost less in general, contractor model or not.
Mutineer
Well-Known Member
Spoken like a true upper
I think those "standards" you speak of will go the way of the dodo.
And all those really super smart office weenies at FedEx thinks so too.
Those standards don't matter anymore. FedEx is intentionally aiming low.
SmithBarney
Well-Known Member
Just make sure you remind your customers what is slated to happen.. I have several larger customers who when told about it will go all UPS. Tell them Ground is going to take most Express packages, and half or more of your express drivers are losing their jobs(dano will say its voluntary resignation.. FedEx will offer you PT or go relocate somewhere else which will probably close soon also...not really voluntary when given such horrible choices) Sorry Ground, I wish it wasn't this way, I have commercial customers that have nothing nice to say about the service they "receive" and will have no problem switching to UPS.
