Here are the facts. We began with 4 day 1 contracors. Not single Day 1 contractor took on additional routes depite having been offered them for free. Why? They are marginally profitable in depressed rural areas where the imputs are way off standard relative to the formula RPS/FXG uses to determine what they think it costs you to run the route. Why is that the case? The core zone formula is blind to RD's. They were never factored into the equation. Don't tell me this is B.S because I talked to the retired UPS engineer who was from downtown Manhatten who set up the routes but did not know of their existance. Secondly when we began to see on a daily basis just how slanted the contract language was in favor of G providing the company with value clearly disproportionate to the value we were receiving we could plainly see that taking on more routes made it even more unbalanced. Third, to give the guy driving that route what he had earned for himself and that was a family sustaining wage, an employer paid health insurane plan and something in the way of a pension there wouldn't have been enough left over to make it worthwhile to have additional routes. So we simply gave any additional routes to whoever wanted them. Needless to say the people who took those routes didn't last very long. Too much debt, too much taken out for a lifestyle the economics of the route couldn't support. Any more snide comments?
I don't know if it is still true, but you were able to 'manipulate' the core zone at HD. CZ was calculated by time from first stop in a CZ to last stop and the number of stops in that time. My CZ in one rural zip went from $98 to $124 when I instructed my driver to make sure he delivered packages in that CZ early in the day, leaving at least one package to deliver when returning to the terminal. It was my highest CZ on that route, and raising it made a difference, since most of my stops were in that CZ. HD used to have each zip code with a different CZ. Rural areas had huge areas covered by a single zip code. I did the same with all 3 of my routes, to optimize pay, but none as dramatically as the first. Start your day and end your day in the highest CZ and the computerized formula 'thinks' it takes longer to deliver in that area. It works best if most of your packages also happen to be in the highest CZ zip code. It did take me more than a year to figure out how to work the CZ scam. I was delivering in 5-6 zip codes on ech of my routes, and HD averages it in your settlement, so your CZ with the most packages has the largest effect. The idea is to maximize the CZ pay for that zip code.
I was in a big, huge metro area on day 1 of HD and fedex refused to let any day one contractors take on new routes as they expanded. Several of us quit because we signed on after being promised that we would have first chance at expansion. Fedex didn't want multi route contractors at all until they had more contractors. We started with 13 contractors on day 1, and they allowed no multi route ownership until there were over 40 routes in the terminal almost a year later. And of course, the first multi route contractor was the son in law of someone in mgmt, and was not even a day one contractor.
I finally got a couple routes when I moved to another terminal, and was told only after acquiring two more routes that I had reached their arbitrary limit, that wasn't in the contract. So all this BS about a contract being what you trust is just that.
I knew that it would take at least 5-6 routes to make multi route ownership worthwhile, and that being stuck at 3 routes simply because fedex said so, was not going to work, and I got out soon after. I paid my drivers a good wage, expecting that the small amount I was making from owning additional routes would add up with enough routes, But fedex put artificial limits on me that were not in the contract. Making $15-$50 a week from each of the extra routes wasn't worth the hassle.
Anyone thinking that the 'contract' rules their business is ignorant.