Brief explanation of the model:
- FedEx Pickup and Delivery, or FedEx Ground, is responsible for the last few miles of the packages journey. The packages are received in their respective terminal from their linehaul operation, on a daily basis. Each contractor, or FedEx P&D owner, keeps their trucks in the hub and the trucks are loaded for delivery by FedEx employees, every morning.
Your responsibility – Hiring, fleet and admin:
- As a FedEx contractor, you are responsible for hiring employees, purchasing, and maintaining your fleet and handling administrative duties within the business. It is important for you to stay on track with FedEx service and safety standards to retain your contract. Therefore hiring a good manager and having a newer fleet is important.
How do you get paid:
- FedEx gives each contractor a set of rates based on the unique characteristics of the routes. These rates are outlined in the Schedule C1 – Charge table summary and can be negotiated on an annual basis. FedEx pays you on a weekly basis for the accumulated stops, miles and packages delivered.
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