FedEx Says It Will Help Contractors Make the Switch to Electric Vehicles by 2040
Many companies today are taking important steps toward reducing their carbon footprint in order to have less of an impact on the global environment.
Amazon, for example, has pledged to be carbon neutral by 2040—a full decade ahead of the Paris Agreement, which aims to reduce greenhouse gas emissions to zero by 2050. Starbucks, Ikea, General Motors, Ford, BP, and JetBlue have also made the carbon neutral pledge, and now FedEx is joining the ranks.
In March of this year, the global logistics leader announced its commitment to being carbon neutral by 2040. A statement released by the company stated, “To help reach this goal, FedEx is designating more than $2 billion of initial investment in three key areas: vehicle electrification, sustainable energy, and carbon sequestration.”
How will this impact FedEx Independent Service Providers (ISPs)?
You might think that because FedEx ISPs are not actual employees of the company that this announcement would not affect them. However, FedEx leaders have made it clear that their goal is to help ISPs, likely through incremental subsidies, make the switch to all electric vehicles within the next two decades.
FedEx ISPs are independent owner/operators, established as legal corporations, that contract with FedEx to provide package transportation and delivery services. The types of FedEx contractor opportunities available are Custom Critical routes, linehaul runs and P&D (pickup & delivery) routes.
ISPs are responsible for all operations of their FedEx route businesses, including purchasing and maintaining all vehicles as well as recruiting, hiring, and scheduling drivers. Based on the terms established in their ISP contract, they are paid weekly based on the volume of packages delivered and/or miles driven during the previous week.
Thinking about buying routes and becoming a FedEx ISP?
KR Capital is a full-service brokerage firm that specializes in helping individuals buy and sell FedEx routes and realize the dream of becoming an independent business owner. Prospective buyers gain access to our network of premier lending partners, as well as a proprietary library of resources to streamline the FedEx approval process so you can get your business up and running as quickly as possible. Contact us today to learn more.