![]() Those numbers are crazy, but they really highlight the importance of FedEx shipping services. In 2022, FedEx Ground is on track to deliver an average of over 9 million packages a day! Luckily, there are 2,200 FedEx office locations, 1,950 FedEx Express stations, and over 600 FedEx Ground operating facilities. ![]() The trick is learning where each location is and what to do when you get there. Maybe now you can see why that minor Ground package acceptance policy at Express drop boxes matters.You can be a prolific eBayer or need to get a birthday gift sent stat.Įither way, sometimes you'll need to ship a package fast-so chances are you’ll be looking for the nearest FedEx location. Is it impossible to merge the two separate Ground and Express companies due to the debilitating disruption that such a merger would cause for the customer, Express employees and low-cost, Ground contractor model? Can FedEx ever operate as efficiently as UPS and drive meaningful profit gains with two separate and distinct, Ground and Express operating companies in the US?Ģ. FedEx has never acknowledged that the dual, Ground and Express, op-co model is not efficient. There are two very real issues/questions in play here:ġ. Recently, FedEx has been under intense pressure from the Wallstreet analyst community as they have been missing EPS/profit targets and blaming this poor performance mostly on a slowing, global economy. As evidence of this, even though FedEx has significantly lower employee costs than UPS, they are consistently less profitable than their primary competitor. It is also a bit cumbersome for the customer, and this applies to both shippers and recipients, to have separate Ground and Express pick-ups and deliveries. You don’t have to be a Harvard Business School MBA to understand why this condition matters, as operating two separate companies to pick-up and deliver Ground and Express packages is not efficient. Distinct management teams for the two separate operating companies.Separate line-haul and regional hub operations.FedEx Express drivers are FedEx employees while FedEx Ground drivers are not FedEx employees and work for contractors that manage/provide Ground services in a defined geography. Two pick-up and delivery operations to include separate local terminals/trucks and drivers, operating under radically different employee models. ![]() While numerous support operations have been merged to improve and simplify the customer experience, FedEx Ground and FedEx Express are still two, very separate transportation companies and function separately in the following ways:
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