# Are FedEx drivers employees or independent contractors and how does that relate to Uber



## oldfart (Dec 22, 2017)

Ive been reading up on Fedex deliver drivers and looking at FedEx delivery routes for sale. I dont have a clear understanding yet but here's what i think I understand

Turns out that just like Uber, Fedex considered their drivers independent contractors, not employees, Drivers had to buy their own trucks and add FedEx signage and buy Fedex uniforms and scanners, .... several lawsuits later the courts found that the drivers are employees...not contractors

So, Fedex is converting from an independent contractor (IC) model to an independent service provider model. (ISP) Now instead of Fedex contracting with individual drivers, on a route by route basis Fedex is contracting with companies who employ the drivers, And those companies have to own at least 4 routes or have at least 500 stops a day. and one company can own no more that 15% of the routes out of any one terminal.

Now there are guys, that owned one route, faced with the decision to buy more routes, or to sell their route, and guys that owned a lot of routes that have to sell some of them to comply with the 15% rule
.
I was on a Fedex IC forum and it reads a lot like this one.. "greedy company, that dosent care about their drivers"

Bottom line there are a lot of FedEx routes for sale, and a lot of drivers up set.

If uber loses the independent contractor/employee battle, (and i think they probably will) I think they will learn from the FedEx example.. No telling how they would structure the thing, but I would bet Uber wont ever employ individual drivers


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## UberFooledYou1 (Dec 14, 2018)

FedEx drivers are independent contractors who own their own box trucks, they have to maintain them and be commercially insured, they get a discount by getting their insurance under the FedEx umbrella insurance company. Once you get approved by FedEx to operate for them, you will be assigned a certain route "that is what you are buying, a route", on that route you will have at least 100-200 trips per day, you get paid a certain amount for each trip/package delivery, that is why you never see FedEx guys just hang out during stops like UPS drivers who are employed by UPS and just work for a salary. As a FedEx driver you need to do at least 130-150 drops per day to be on the profitable side, most people who buy more than one FedEx route hire drivers, those drivers need to be approved by FedEx.
In regards to that lawsuit, it was only in one state, and no one knows what the outcome was.
FedEx freight, which is semi trucks are owned and operated by FedEx.

http://www.commercialroutesforsale....y0qbVyHaSfQeLYxgralEj9l9MqIFiN4xoCVewQAvD_BwE
https://www.routeconsultant.com/rou...U0mj3JCLIid6OOhiueO3sOzBK18X0JPxoCzekQAvD_BwE


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## oldfart (Dec 22, 2017)

The business model you describe is no longer the FedEx way. They are converting from an independent contractor model to an independent service provider model

Individuals that "own" one route have to buy more or sell out

And there has been more than one lawsuit

https://www.jdsupra.com/legalnews/december-2018-independent-contractor-15988/


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## Bubsie (Oct 19, 2017)

The obvious difference with the FedEx model is that the route is known. As opposed to Uber/Lyft where we can't make an independent decision on if a ride is worth it financially, as we dont know the end point until we start the ride.


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## oldfart (Dec 22, 2017)

Bubsie said:


> The obvious difference with the FedEx model is that the route is known. As opposed to Uber/Lyft where we can't make an independent decision on if a ride is worth it financially, as we dont know the end point until we start the ride.


There are lots of differences, the one I'm focusing on is that the drivers are employees of an ISP not independent contractors like us


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## Bubsie (Oct 19, 2017)

oldfart said:


> There are lots of differences, the one I'm focusing on is that the drivers are employees of an ISP not independent contractors like us


Yes, its clear Fedex wants its drivers at arms length from possible employee status. If there's issues with misclassifaction, liability is on the third party, and not themselves.


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## wallae (Jun 11, 2018)

oldfart said:


> Ive been reading up on Fedex deliver drivers and looking at FedEx delivery routes for sale.


Look for a good one with few stops that is not spread out or leave you 50 miles from home out in the boonies


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