Package deal: How FedEx Ground delivers the goods amid challenges
FedEx Ground has relied on a contractor model since its inception. But what was once a low-cost solution now may be imperiled by the challenges of so-called last-mile delivery.
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FedEx Ground has relied on a contractor model since its inception. But what was once a low-cost solution now may be imperiled by the challenges of so-called last-mile delivery.
FedEx claims the contractor, which operated 225 routes in 10 states and had called for fees to be increased along with other changes, launched a “coordinated and multi-faceted campaign” that was “unfairly and wrongfully disparaging” FedEx Ground.
FedEx is seeking injunctive relief and monetary damages following what it called a “coordinated and multi-faceted campaign.”
“FedEx Ground will not discuss, negotiate, or renegotiate service provider agreements or financial terms with a committee or any individual purporting to represent a collective body of service provider businesses,” FedEx Ground CEO John Smith said in a letter to contractors.
FedEx Corp. counters that the more than 6,000 service provider businesses in its Ground network earned an average revenue of $2.3 million in 2021.
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