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FedEx Discussions
Glad I'm out of this Part2
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<blockquote data-quote="OUMick" data-source="post: 1866750" data-attributes="member: 57249"><p>It would still be a lot harder than just buying the contractor's vehicles and hiring their drivers. The cash outlay would be immense. Fedex can obviously afford that purchase but you would see a ramp up in cash before it happened. They would have to do an extraordinary amount of hiring before they took on the drivers. It would make more sense for them to employ the contractors and take their business over. Generally when businesses decide to acquire another business they try not to disrupt the model too much at first. There would and could be some huge resentment if they pulled the rug out from under the contractors. Even losing 20% of the drivers (which I think is low) would be catastrophic. I don't think Fedex is wanting to change anything except maybe a few small changes here and there.</p></blockquote><p></p>
[QUOTE="OUMick, post: 1866750, member: 57249"] It would still be a lot harder than just buying the contractor's vehicles and hiring their drivers. The cash outlay would be immense. Fedex can obviously afford that purchase but you would see a ramp up in cash before it happened. They would have to do an extraordinary amount of hiring before they took on the drivers. It would make more sense for them to employ the contractors and take their business over. Generally when businesses decide to acquire another business they try not to disrupt the model too much at first. There would and could be some huge resentment if they pulled the rug out from under the contractors. Even losing 20% of the drivers (which I think is low) would be catastrophic. I don't think Fedex is wanting to change anything except maybe a few small changes here and there. [/QUOTE]
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Glad I'm out of this Part2
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