The Business of Independent Service Provider Contracting

Changes Are On The Way. Could These Be The Big Ones?

Posted by Jeff Walczak on 4/12/21 2:00 PM

What do you get when you combine:

  • the current regulatory environment, 
  • Big Changesignificant shifts in market demand resulting in large changes in CSA characteristics,
  • the demand from Wall Street & investors for increased ROI,
  • and a cult following of litigious regulators and attorneys looking for big paydays?

Let’s just say that it looks a lot like today.

All these forces are coming together to bring about what could be the largest, most sweeping change in FXG’s business model ever, which will in turn, drastically change how you monitor and run your businesses. 

That’s saying something even after the changes that have been underway for the last decade.

If you look around, you can see the signs. FXG has actually begun to signal that it’s coming. It’s now just a matter of how much needs to be done, and how quickly, based on the rapidly evolving regulatory landscape.

What About The Changes That Have Already Happened?

There’s no doubt that change has been occurring for a long time now.

As you know, all these things have already, and continue to happen:

  • changes to the size and complexity of your operation, larger, and now smaller
  • the relinquishment of the proprietary interest in your work areas
  • Rear Viewdecreased involvement of FXG in the manner, method and means of how your business is run
  • the tightening of your operating margins 
  • overlap
  • integration with Express
  • and much more!

Please note that most of these changes needed to be implemented in order to facilitate the much broader and sweeping changes that are about to take place.

What's Going To Happen?

If you have followed us for some time, you would recall that we have talked about the transformation from a lifestyle business to a transportation company for years. Regulatory change in the form of legislation or an executive order will fundamentally transform not only the transportation industry, but most franchises as well.

High ImpactBy the time you read this, it may have already happened. If not, we can point to all the signs showing that it's imminent. 

The changes will impact how you deal with:

  • regulation & compliance 
  • financial monitoring & reporting
  • sweeping operational change
  • buying and selling your business
  • administration 
  • FXG

and much more...

Let’s just say it’s time to become very familiar with the terms joint or co-employee

So, When Is This Going To Happen?

Keep in mind that all the current waves of change have been occurring for over a decade. 


Change is best absorbed slowly, over time. In this way, it doesn’t seem too drastic and time makes it easier to adapt.

This is how it has been rolled out so far.

But now, based on the current situation and forces that are external to what FXG can control, there may be the need to implement the rest of the plan that has been underway. It might be necessary to take another decade’s worth of change and condense it into a few years...or less.

Even if sudden regulatory action is not taken, rest assured that the continued march by FXG toward shaping lifestyle businesses into transportation companies will continue and probably accelerate because of the threats posed by the current environment.

We’ve Been Working Hard On Making This Easy On You

We’ve known about these changes for quite some time, and have been building systems and processes to help you complete the transformation from lifestyle business to transportation company.


We're ready, and we have put together the vital information you’ll need to navigate the upcoming choppy waters.

First, we will be exploring the possibilities in May at our Unboxed Events where we’ll be able to convey many of the details of the changes that are about to take place. You won't want to miss these events, because information specific to your particular situation will be scarce. 

Later this summer and fall, we’ll be fanning out across the country with presentations that will be focused on specific topics critical to success as you adapt to the likely turmoil.


Topics: Business Planning, Business Outlook, Compliance, Ground, FedEx Ground, Business, Regulation, Co-employee, change

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