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FedEx vs. UPS: opposing models in the delivery business raise questions (2004)

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Re: FedEx vs. UPS: opposing models in the delivery business raise questions (2004)

#2
Perhaps I'm reading it wrong, but the article seems to slant in favor of FedEx using contractors. And then you look at the pros and cons.

  FedEx Ground Cons:

  - No benefits, no overtime pay, no sick time, no insurance

  - Drivers pay for vehicle, gas, supplies, insurance, and everything else

  - No company retirement, seemingly less stable environment

  - No Teamsters contract or collective bargaining

  - Drivers have only one client: FedEx
That's one step above glorified pizza delivery driver for a career. I wouldn't wish that on anyone. My wife has extended family, on the other hand, that have worked 40+ years at UPS and retired with benefits. Now, I'm not saying, "UPS rules, and FedEx sucks." But I'm hesitant to throw my support behind any business model that treats people like temporary commodities instead of long-term resources.

Re: FedEx vs. UPS: opposing models in the delivery business raise questions (2004)

#4
Interesting business space. Both UPS and FedEx manage to raise rates at a clip that is higher than inflation, every single year. Even when their costs decline, like when fuel prices dropped.

I guess there is technically no collusion, but it doesn't seem like there is much competition either.

It makes it difficult for smaller companies to do well because only the biggest companies get reasonable shipping rates.

This is one space where I won't shed any tears if Amazon hands them their ass.

Re: FedEx vs. UPS: opposing models in the delivery business raise questions (2004)

#5
post #4

Interesting business space. Both UPS and FedEx manage to raise rates at a clip that is higher than inflation, every single year. Even when their costs decline, like when fuel prices dropped. I guess there is technically no collusion, but it doesn't seem like there is much competition either. It makes it difficult for smaller companies to do well because only the biggest companies get reasonable shipping rates. This i…

Amazon delivery people are so inconsistent (packages only make it to my secure package room 50% of the time) and according to many reports online, unreliable.

Re: FedEx vs. UPS: opposing models in the delivery business raise questions (2004)

#7
post #2

Perhaps I'm reading it wrong, but the article seems to slant in favor of FedEx using contractors. And then you look at the pros and cons. FedEx Ground Cons: - No benefits, no overtime pay, no sick time, no insurance - Drivers pay for vehicle, gas, supplies, insurance, and everything else - No company retirement, seemingly less stable environment - No Teamsters contract or collective bargaining - Drivers have only one…

This reminds me of a story posted here not long ago

"To Understand Rising Inequality, Consider the Janitors at Two Top Companies, Then and Now"

https://www.nytimes.com/2017/09/03/upshot/to-understand-risi...

HN Comments: https://news.ycombinator.com/item?id=15161445

Re: FedEx vs. UPS: opposing models in the delivery business raise questions (2004)

#10
post #4

Interesting business space. Both UPS and FedEx manage to raise rates at a clip that is higher than inflation, every single year. Even when their costs decline, like when fuel prices dropped. I guess there is technically no collusion, but it doesn't seem like there is much competition either. It makes it difficult for smaller companies to do well because only the biggest companies get reasonable shipping rates. This i…

The only delivery company worse than Amazon's own delivery is OnTrac.
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