how do i drive someone elses route?

[thecraftyveteran]

i had been researching information on how to become a fedex driver and i heard that you can drive under someone elses account. i know that fedex hires independent contractors, but there are people who purchase routes and have people drive it for them. is that true?

 

[Ricochet1a]

Yes, FedEx Ground uses the independent contractor model for its delivery operations. Ground is pushing for all of its route owners to own at least 2 or more routes, to give FedEx some legal credibility regarding its use of the independent contractor model.

If you have the inclination, you can find a "contractor" that owns existing routes, or purchase expansion routes from Ground directly, then start your own little business. In order to be profitable for the owner of the routes, most need to have a minimum of 2, and closer to 4 or 5 routes which they own in order for the revenue to justify the overhead expenses involved. The concept of economy of scale is definately in play here.

If for some reason you are thinking about working for a IC, do some more research and find out what the pay is and the benefits are. I'll save you some time... The typical Ground driver makes about $13/hr and has no FedEx sponsored benefits. If they receive anything from the IC they work for, it is because they have the economy of scale to be able to afford some minimum level of heath insurance. There is no pay "progression", no seniority and no long term career prospects. All Ground drivers bust their tails for wages that are laughable. Think long and hard before applying for work as a Ground driver.

 

[MrFedEx]

Yes, FedEx Ground uses the independent contractor model for its delivery operations. Ground is pushing for all of its route owners to own at least 2 or more routes, to give FedEx some legal credibility regarding its use of the independent contractor model.

If you have the inclination, you can find a "contractor" that owns existing routes, or purchase expansion routes from Ground directly, then start your own little business. In order to be profitable for the owner of the routes, most need to have a minimum of 2, and closer to 4 or 5 routes which they own in order for the revenue to justify the overhead expenses involved. The concept of economy of scale is definately in play here.

If for some reason you are thinking about working for a IC, do some more research and find out what the pay is and the benefits are. I'll save you some time... The typical Ground driver makes about $13/hr and has no FedEx sponsored benefits. If they receive anything from the IC they work for, it is because they have the economy of scale to be able to afford some minimum level of heath insurance. There is no pay "progression", no seniority and no long term career prospects. All Ground drivers bust their tails for wages that are laughable. Think long and hard before applying for work as a Ground driver.

Good advice. Ground is not a good deal for the driver. Hey, where have you been? I've been trying to hold down the fort by myself here. We need your input and wisdom.

 

[ups79]

Yes, FedEx Ground uses the independent contractor model for its delivery operations. Ground is pushing for all of its route owners to own at least 2 or more routes, to give FedEx some legal credibility regarding its use of the independent contractor model.

If you have the inclination, you can find a "contractor" that owns existing routes, or purchase expansion routes from Ground directly, then start your own little business. In order to be profitable for the owner of the routes, most need to have a minimum of 2, and closer to 4 or 5 routes which they own in order for the revenue to justify the overhead expenses involved. The concept of economy of scale is definately in play here.

If for some reason you are thinking about working for a IC, do some more research and find out what the pay is and the benefits are. I'll save you some time... The typical Ground driver makes about $13/hr and has no FedEx sponsored benefits. If they receive anything from the IC they work for, it is because they have the economy of scale to be able to afford some minimum level of heath insurance. There is no pay "progression", no seniority and no long term career prospects. All Ground drivers bust their tails for wages that are laughable. Think long and hard before applying for work as a Ground driver.

Will these independent contractors with multiple routes soon have to provide medical insurance for the people who they employ to deliver these multiple routes? This could really bite.

 

[thecraftyveteran]

great man, thanks, but how do i go about finding an independent contractor in my area?

 

[UpstateNYUPSer(Ret)]

great man, thanks, but how do i go about finding an independent contractor in my area?

The next time you see one of the white and green trucks ask the driver.

 

[Ricochet1a]

Good advice. Ground is not a good deal for the driver. Hey, where have you been? I've been trying to hold down the fort by myself here. We need your input and wisdom.

Grad School does keep me busy... With the break, I've had time to read up on the forums and talk to some of the people that I know.

The Purple Payout that is coming is yet another bone being thrown out to the wage employees instead of the full schedule pay increases. There is talk of getting the RLA classification pulled (Congressional sources), but it is mostly talk. There won't be any major legislation move through before the '10 elections in all reality. Health care has been a brutal battle for most centrist Representatives and they are concerned about re-election rather than yet another battle. Still, if any mention of the legislation comes up in the news, everyone should fire off another round of letters to their Congressional representation.

Not much other news out of Memphis regarding the shifting of volume to Ground as of yet. It appears that they are waiting until the RLA legislation is as dead as possible before making any other moves regarding the structure of Express. As with many things in Express, it is the threat of Congressional action or unionization of the wage employees that restrains Express more than anything else.

The primary motivator for FedEx is the fact that Ground packages are delivered by "employees" making about $13/hr with no benefits, whereas Express volume is delivered by employees making an average of $19/hr with a benefits package worth another $7/hr or so. This means that the Express Couriers are "costing" FedEx double what the Ground "employees" cost and they desperately want to narrow the gap. Moving volume over is one way to narrow that "cost" differential. Going to a work force that consists of a greater proportion of part-timers is another way to narrow the gap.

There has been no real action by the Teamsters in any districts that I've heard of (Memphis source) that concerns Express. It seems the Teamsters are biding their time waiting for the RLA status to get pulled before they launch a campaign to organize Express. So both Fred and Hoffa are in a classic "Mexican standoff", each waiting for the right conditions to suit their individual purposes before either will make a move. If the RLA classification is pulled, Fred will start shifting delivery of non-overnight volume to Ground while the Teamsters will make a mad dash to organize the Couriers and RTDs as fast as possible before Express can reorganize. With the economy in the shape it is in, there isn't much ability for labor to force the issue right now.

 

[FedExer267]

Will these independent contractors with multiple routes soon have to provide medical insurance for the people who they employ to deliver these multiple routes? This could really bite.

I am sorry it bites for you but all I have to say is its about time! Now if we could just get a livable wage that would be nice too

 

[ups79]

I am sorry it bites for you but all I have to say is its about time! Now if we could just get a livable wage that would be nice too

It does not bite for me. I am retired from UPS, not an independent contractor for fedex. I only ask the question.

 

[MrFedEx]

I am sorry it bites for you but all I have to say is its about time! Now if we could just get a livable wage that would be nice too

If your contractor actually had to pay you both a living wage and benefits, all of the profit and advantage would be removed from the Ground scheme and it would no longer be of interest to FedEx. In other words, don't expect anything.

The whole premise for Ground is that it shifts costs away from the corporation and onto the individual contractor, who then pays you peanuts and skims the remaining profit.

If at any point, the drivers are deemed to be employees, the FedEx advantage largely evaporates, and the scam is stopped dead in it's tracks.

Think about it. UPS provides the same ground service, but has to maintain a fleet of vehicles, pay a very livable wage, and also provide an excellent benefits package, including a real retirement plan. Then UPS gets to compete with FedEx Ground for the same shippers, but with this significantly higher cost structure. Is Ground operating at an extreme advantage? Absolutely. Is it illegal? That is pending. What makes Fred S so unique that he alone gets to do business with a built-in incredible advantage? Good question.

In the meantime, rest assured that Fred and his army of lawyers are doing everything possible to keep you underpaid so he can keep cashing-in. He's had to send a few bucks to the contractors as the master plan has been force-modified by pending legal action, but the essential scam remains. As long as you're getting screwed, everything works to Smith's advantage. It will be very interesting to see what happens if the courts eventually decide that you are a real employee.

 

[Brown287]

I would love to know what the real profit is for each Ground package. Think about it they need to allocate a piece of revenue for each step of the journey. The disadvantage that this creates is that you cannot consolidate expenses. It is true that UPS owns all the machinery and employees all the employees but that gives them total control over the cost structure, which FedEx does not share in. For example when it comes to fuel UPS has the advantage of buying in such great bulk that they are able to obtain a lower price. I understand that currently their setup allows them to not be on the hook for all the liability that does not mean that wont change. There have been many lawsuits against the Ground model, and yes not one has completely ended it, but they all have resulted in a little bit more regulation. Just curious on how long the honeymoon will last.