FedEx E-Commerce Revamp Jolts Delivery Army by Piling On Costs

Discussion in 'The Latest FedEx Headlines' started by cheryl, Oct 29, 2019.

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  1. cheryl

    cheryl I started this. Staff Member

    FedEx E-Commerce Revamp Jolts Delivery Army by Piling On Costs - MSN

    FedEx Corp.’s drive to reap the rewards of e-commerce is stirring anxiety among some of the company’s most important partners: the thousands of small businesses that handle its ground deliveries.

    With profit under pressure, FedEx plans to start Sunday service, deliver more small parcels and update its network to improve handling of large packages. The courier also is requiring contractors to purchase hand-held computers from outside vendors, operate on-board cameras and take over the vetting of drivers. The ground folks are still wondering how much they’ll be reimbursed for the changes.

    “Obviously, the future is pretty scary right now, with the e-commerce issues and what they’re going to pay,” said Tracy Toothman, whose Grand Rapids, Michigan-based company has delivered for FedEx since 1998, when the package giant expanded from air service to include ground deliveries. “The expenses have been going up exponentially. I’m just hoping the income will be there.”