The Youngin' Of It All
Well-Known Member
I'm going to say this again, but please keep this on topic. Ground and Express are both welcome to comment. So here is what I think is going to happen after 2020, more towards 2021 or 2022. Not exactly certain on the exact dates.
I saw someone else post on here about Express wanting to put cameras in their trucks. We have to do it already for our next contract to even negotiate. No big deal. Company changes color schematic all Orange. No problem. Overlap between Ground and Home Delivery. Sure. 1 year contracts only for us on Ground? Why only 1 year? Hmm..
My theory and sources are telling me FedEx's ultimate goal is to get the whole country on the same level for ISP and overlapped 100% by the early 2020's, then plan to start shifting Express volume. How much? I don't know the answer. How soon or fast? Again, I do not know. Now I know what you are thinking, Fred would never let that happen. Truth is, it is already happening. FedEx wants to pull out of the industry all together and give it to the Ground side to contract while minimizing costs through any opco.
When it is all said and done, FedEx will simply only be made up of sales, lawyers, customer service, and some slight P&D / Sr Management. We will have our own sorts, lease our own spots in terminals, and gain our own DOT number. Now think about that for a second, why on earth would they do that? Basically all they did was build up a brand. Why do you think brand promotion was paid out versus those who didn't participate in that feature in their contract? Contractors choice in additional revenue.
Next, take a look at what is going on right now with the two man on a truck and IC warehouse they have been rolling out. UPS has clearly made it obvious they want nothing to do with investing in this type of packages just based on their building structure to move these around. FedEx is trying to obtain success in an industry where UPS nor Amazon (for now) want nothing to do with. Who can they give it to while making money off of it? Ground. Contractors. Lower payout = More profit.
Lastly, 6 day operation. It's a bust right now financially, but what happens if Express volume goes into the mix? That should make it somewhat more feasible financially. After all, you are overlapped. Not to mention I can confirm this will become 7 day. When? I do not know. But if Amazon is doing it, you better believe we will be too.
Bottom line, lots of changes going on right now in FedEx as a whole, which are mainly invested in Ground. Really take a good look at this company right now and ask yourself what you can see it being in 5 years and if you will still be around for the ride. Especially you Bacha and Makaveli. I've concluded all FedEx did was build a brand, made their money, now they will make it what it should have been during the RPS times at a 45% market share versus when it was single digits. Of course they had to kill the one route mindset and wanted it to be legitimate corporations they contract with, and will finally shift that control where it rightfully belongs. Amazon is already doing this, but don't forget Amazon is based on their own volume, whereas we rely strongly on customer accounts. Big difference. On top of that, only the strong will survive this from the Ground side as a whole. Out of my building alone we have already gone from 9 to 7. It's going to get a lot bigger than you guys think... best of luck to you all.
I saw someone else post on here about Express wanting to put cameras in their trucks. We have to do it already for our next contract to even negotiate. No big deal. Company changes color schematic all Orange. No problem. Overlap between Ground and Home Delivery. Sure. 1 year contracts only for us on Ground? Why only 1 year? Hmm..
My theory and sources are telling me FedEx's ultimate goal is to get the whole country on the same level for ISP and overlapped 100% by the early 2020's, then plan to start shifting Express volume. How much? I don't know the answer. How soon or fast? Again, I do not know. Now I know what you are thinking, Fred would never let that happen. Truth is, it is already happening. FedEx wants to pull out of the industry all together and give it to the Ground side to contract while minimizing costs through any opco.
When it is all said and done, FedEx will simply only be made up of sales, lawyers, customer service, and some slight P&D / Sr Management. We will have our own sorts, lease our own spots in terminals, and gain our own DOT number. Now think about that for a second, why on earth would they do that? Basically all they did was build up a brand. Why do you think brand promotion was paid out versus those who didn't participate in that feature in their contract? Contractors choice in additional revenue.
Next, take a look at what is going on right now with the two man on a truck and IC warehouse they have been rolling out. UPS has clearly made it obvious they want nothing to do with investing in this type of packages just based on their building structure to move these around. FedEx is trying to obtain success in an industry where UPS nor Amazon (for now) want nothing to do with. Who can they give it to while making money off of it? Ground. Contractors. Lower payout = More profit.
Lastly, 6 day operation. It's a bust right now financially, but what happens if Express volume goes into the mix? That should make it somewhat more feasible financially. After all, you are overlapped. Not to mention I can confirm this will become 7 day. When? I do not know. But if Amazon is doing it, you better believe we will be too.
Bottom line, lots of changes going on right now in FedEx as a whole, which are mainly invested in Ground. Really take a good look at this company right now and ask yourself what you can see it being in 5 years and if you will still be around for the ride. Especially you Bacha and Makaveli. I've concluded all FedEx did was build a brand, made their money, now they will make it what it should have been during the RPS times at a 45% market share versus when it was single digits. Of course they had to kill the one route mindset and wanted it to be legitimate corporations they contract with, and will finally shift that control where it rightfully belongs. Amazon is already doing this, but don't forget Amazon is based on their own volume, whereas we rely strongly on customer accounts. Big difference. On top of that, only the strong will survive this from the Ground side as a whole. Out of my building alone we have already gone from 9 to 7. It's going to get a lot bigger than you guys think... best of luck to you all.