Will the New FedEx CEO Be an Ally for Ground Contractors?

FedEx Corp. saw major staff changes in June, including the promotion of Raj Subramaniam to the role of president and CEO of the company. Now, FedEx contractors, many of whom are still reeling from the challenges of the past few years, are eager to see if the new hire will be a positive change for them.

What role do contractors play at FedEx?

From its humble beginnings in the early 1970s as a small startup company created to help businesses get their packages delivered faster, FedEx has since grown into a multinational shipping and delivery company serving more than 200 countries and territories across the globe and with an average daily package volume of 18 million.

FedEx contractors—roughly 6,000 small business owners located across the country—represent an important part of that success. Unlike direct employees, they are independent business owners operating under the rules, standards, and regulations of the larger FedEx corporate entity. For decades, these contractors have been a driving force behind much of the company’s profit growth.

Recently, FedEx contractors have experienced key challenges. 

When the COVID-19 pandemic hit in early 2020, nobody could have predicted its impact on the shipping and delivery industry. However, contractors soon found themselves trying to manage increased delivery volume due to a surge in online shopping that is still going strong today. On top of that, there were key health and safety issues to contend with, and many businesses struggled to stay afloat.

Fast forward to the lingering supply chain issues, which have made increased efficiency priority #1 for FedEx route business owners. Many have implemented new technology to boost productivity and shorten delivery times, hoping to offset the impact of large-scale delays. On a smaller scale, contractors are focusing on improving customer service and ensuring customers know they are doing everything possible to ensure on-time deliveries.

Will Subramaniam be an ally for contractors? Only time will tell. 

The new CEO adopted the role on June 1st, so it may be some time before contractors feel the ripple effect of any significant changes. Still, there is a hope that Subramaniam will make FedEx Ground issues a priority and ease the growing concerns of FedEx route owners nationwide.

For those who don’t want to stick around and see what happens, the team at KR Capital is here to help you sell your FedEx routes quickly and for a premium price. We provide specialized resources to help you understand how FedEx routes are valued, marketed, and sold, and we can guide you through the intricate FedEx sales process to ensure a successful sale. Contact KR Capital today to learn more.