Their obsession with economy of operation has relegated it a second tier operation in terms of appearance, precision professionalism and performance. In the coming days guys like IWBF who may have actually wanted to head up a top of the line operation may find themselves with a revenue stream that will make it impossible to do so. Clearly in the eyes of X ground contractors were doing too well and decided to do something about it. The obvious question is how far will X go to cut contractor margins in order to preserve their own. That's important given the size of recent settlements regarding worker misclassification lawsuits that are anything but completely settled. Money to pay present and future settlements may very well come expense of the ISP's who remain.
Investing in a FedEx route basics
- Thread starter 12yearsaslave
- Start date
dvalleyjim
Well-Known Member
I don't like Trump. Their were many candidates I would have voted for but now it's seem's to be Trump vs. Hillary. I lived through the Carter years. I voted for John Anderson (look it up youngsters) because I thought Reagan would get us into WW3. After four years of Reagan and 5% economic growth per year, I became a Republican. I thought America was over, I was a boy scout turned liberal. Reagan turned me and was the greatest president in my lifetime. Soo. let the bashing begin.
Who was the keynote speaker at the 1948 Democratic National Convention? Why it was liberal Democrat Ronald Reagan. Then he got rich and suddenly he was a conservative Republican.Who was the keynote speaker at the 1956 Democratic National Convention? Why it was liberal Democrat Charleton Hesston who like Reagan got rich doing B movies and like Reagan came to believe that if your not rich, it's your fault.
dvalleyjim
Well-Known Member
I think the new party of the uber rich is now the progressive democrats. They are the techie, wall street darlings. Don't believe me just look at the fedex propaganda tv at you station. You'll see crony capitalist-globalist Fred pushing the Progressive liberal democratic agenda.
dvalleyjim
Well-Known Member
Besides I was a liberal and didn't vote for Reagan the first time. Carter had America in the crapper and everyone said we were done. After 4 yrs. of Reagan I voted for him. Greatest president in my lifetime. I think it's different now. Americans don't believe in the Constitution, the real free market, a small central government, and individual freedom. I guess if Americans no longer desire liberty then we won't have it.
ImWaitingForTheDay
Annoy a conservative....Think for yourself
An interesting side note. While campaigning for president Reagan said that if had been president at the time the Iranians took American Embassy hostage he would have sent the Marines into Iran. Five months after his election Newsweek magazine obtained a copy of a intelligence report that said that if that action had been taken the Soviet Union would have immediately intervened militarily in Iran's behalf. Combined with the fact that the only way into Iran at the time was to jump into Iran as well as the extreme difficulty of providing supply and support the net result is that the 82nd Airborne would have been cut off completely wiped out in 38 days. This report in turn explains clearly why Carter tried a secret rescue operation rather than risk a Soviet response. Don't try to tell me this was hearse . I read the article personally including maps and other details that showed that this was no fabrication created by the "liberal" media. The recent glorification or Reagan by the conservative media ( Fox, Newsmax etc) is a failed attempt to draw attention away from the fact that Trump is the worst political product the GOP has to offer the American people since Richard Nixon.
Couldnt agree more. Seems to fit Fedex pattern. Cant blame them their looking out for their shareholders. The question does remain, are we going to do the same?
It's reasonable to assume that this conduct has not been disclosed or discussed to any degree to fedex shareholders, and explained how it jeopardizes their money pit scheme. Be nice to see how disclosing these business practices to invested shareholders would effect Fedex approach to Ground operating procedures in the future, if their shareholders knew what was happening behind the scene.
59 Dano
I just want to make friends!
Shareholders already know that Ground wants more value from contractors.
Spot on Exec32. This post and the one over at the newer thread clearly identifies a growing pattern of enhanced and expanded mandates with little or no increased revenues to pay for them out side of demanding greatly increased production from employees fewer of them are going to be willing to meet. I am sure that by now you are aware of the fact that in it's March 8K filing X announced a proposed a settlement regarding another class action lawsuit but there are still others out there including the big nationwide suit filed under ERISA. . Now next week X will release it's 4th quarter 2106 operating results and year end summary that may disclose more information if you look carefully.
Yeah, but do these large investment firms with lots of funds tied up into the performance of FedEx stock aware of the conduct by FedEx that exposes their investments to more risks. They probably rely on FedEx talking points about how their management and operations create all this equity, not so much the absolute complete reliance on the contractor model, that they put in jeopardy...
About 2 years ago there was some talk that Pershing Capital might have a go at gaining a bigger foothold on X. But it's top gun Bill Ackman denied making it quite plain that he wasn't interested due to the disconnect between Express and Ground. The are however plenty of other private equity firms hedge funds , pension plans etc that are not happy about the stock falling from 185 to 125 but despite a dividend bump the stock is till hanging around 160.
Know about them?! They demand them!
I disagree, it is an unnecessary risk to exert the level of control that is being used for a contractor model to work. FedEx just needs a competent network of contractors, however they blew it by seeking out morons and spineless individuals as contractors.
The options are continue to conduct business as usual and risk it all, or let the business model work based on capabilities of the contractor. I believe any investor would accept the latter.
The options are continue to conduct business as usual and risk it all, or let the business model work based on capabilities of the contractor. I believe any investor would accept the latter.
12yearsaslave
Well-Known Member
These seem to be mutually exclusive
Fedex, while seeking out the 'morons and spineless' was actively working against those who showed any inkling of even thinking about acting independently. At the start of HD, it was probably worse than it is now because back then, new contractors didn't have a history of how fedex acted to look at. New contractors now know what fedex demands of them, and find resources like this site to garner more info.
My file had communications directing the mgr to seek out reasons to write me up in business discussions because the DM suspected I had 'union' sympathy, which I had never even considered. They they exaggerated the seriousness of everything. For example, my cargo van had an oil sensor that determined when the oil needed to be changed. I could get as mush as 12-15000 miles on my 300-400 daily mile route. Yet they considered it a violation of maintenance standards, and tried to use it in a hearing to 'prove' that I wasn't competent. Of course I won easily at that hearing. I had a small crack in my windshield in the bottom corner, well within DOT allowable, and had had it for over a year, when this manager forced me to repair it for 'appearances' and that was something they used to build a file against me. This all happened when they were trying to force me to change my primary core zone to accomodate another contractor, and I refused to drive another 120 mile roundtrip to deliver 5-15 stops on his route. Of course, with fedex delay tactics, I didn't get those files until time had expired to make a claim on those issues and I had decided to join the class action.
You can sign the contract but don't expect FXG to abide by it. Never have never will.
I am trying to assess how realistic it is for me to purchase a route(s) and get to scale prior to the new stops/route requirements kicking in. I have ~ $100k liquid, ~$250k in retirement accounts, 800 Fico score. I have a business background, but no industry background (other than unloading trucks at UPS in college for a year).
My plan was to start with 1 or 2 routes, learn the business while driving and then buy/finance additional routes. I am almost completely open to any geographical area in the U.S.
Am I being overly optimistic that I would be able to reach scale, based on my finances?
I am mainly worried that growing to scale over a few years might put me at more risk than just buying an at scale route (in other words I get stuck with 2-4 routes and have to sell them for a loss). But on the other hand I am not sure based on my finances that I could afford to buy an at scale route..and I question whether I would be able to effectively manage 5 routes/500 stops without experience in the industry?
I would appreciate any thoughts on growing to ISP scale vs. buying ISP scale and if the latter is a viable option for me based on my finances and experience.
Thanks all
My plan was to start with 1 or 2 routes, learn the business while driving and then buy/finance additional routes. I am almost completely open to any geographical area in the U.S.
Am I being overly optimistic that I would be able to reach scale, based on my finances?
I am mainly worried that growing to scale over a few years might put me at more risk than just buying an at scale route (in other words I get stuck with 2-4 routes and have to sell them for a loss). But on the other hand I am not sure based on my finances that I could afford to buy an at scale route..and I question whether I would be able to effectively manage 5 routes/500 stops without experience in the industry?
I would appreciate any thoughts on growing to ISP scale vs. buying ISP scale and if the latter is a viable option for me based on my finances and experience.
Thanks all
STFXG
Well-Known Member
Go big or go home. Growing to scale will be very difficult. The number of routes for sale are diminishing quickly. You'd really be rolling the dice.
If you're unable to drive yourself it is more difficult than if you can jump in the truck when needed. It's going to cost you more to have additional drivers and a manager... to the point it might not be worth the risk for the return you'll get.
If you're unable to drive yourself it is more difficult than if you can jump in the truck when needed. It's going to cost you more to have additional drivers and a manager... to the point it might not be worth the risk for the return you'll get.
