--- title: ISP Blog | Information for ISP Ground Businesses | BC description: BC | Become an expert FedEx Ground Business Contractor or ISP while getting organized, profitable and successful by reading the latest news and guest posts on the eTruckBiz for FXG Blog. --- - 855-873-8585 - [Facebook](https://www.facebook.com/pages/ETruckBiz/154560897943915?ref=hl) - [Twitter](https://twitter.com/eTruckBiz) - [Mail](mailto:clientcare@etruckbiz.com) [![flat\_grey\_red\_plasso\_vector\_4x](https://info.etruckbizforfxg.com/hs-fs/hubfs/images/flat_grey_red_plasso_vector_4x.png?width=320&name=flat_grey_red_plasso_vector_4x.png "flat_grey_red_plasso_vector_4x")](http://www.etruckbizforfxg.com/) # The Business of Independent Service Provider Contracting ## [Survivor, Operator, or Builder: Which Two Will Still Be Here in 2031?](https://info.etruckbizforfxg.com/blog/survivor-operator-or-builder-which-two-will-still-be-here-in-2031) Posted by [Jeff Walczak](https://info.etruckbizforfxg.com/blog/author/jeff-walczak) on 9/10/26, 10:19 AM - [Tweet](https://twitter.com/share) [![](https://info.etruckbizforfxg.com/hubfs/Untitled-20260910-101746-8944.png)](https://info.etruckbizforfxg.com/blog/survivor-operator-or-builder-which-two-will-still-be-here-in-2031) FedEx does not publish a list of the contractors it intends to keep. It does publish a number every year that tells you the same thing. In its 2023 annual report, Federal Express contracted with nearly 7,000 independent businesses for pickup, delivery, and linehaul ([FedEx 2023 Annual Report](https://www.sec.gov/Archives/edgar/data/1048911/000130817923000963/fdx4194041-ars.pdf)). By May 2024 that number was about 6,000 ([FedEx FY2024 10-K](https://www.sec.gov/Archives/edgar/data/1048911/000095017024083577/fdx-20240531.htm)), by May 2025 about 5,700 ([FedEx FY2025 10-K](https://www.sec.gov/Archives/edgar/data/1048911/000104891125000011/fdx-20250531.htm)), and by May 31, 2026, approximately 5,300 ([FedEx FY2026 10-K](https://www.stocktitan.net/sec-filings/FDX/10-k-fedex-corp-files-annual-report-85e6fe8dc5e3.html)). That is roughly 1,700 FedEx contractor businesses gone in three years, a 24% reduction, while the packages did not go anywhere. They are being delivered by the contractors who are left. Network 2.0 is the engine behind that number, and it is not finished. FedEx had implemented Network 2.0 at about 360 U.S. locations as of May 31, 2026, and expects to complete the U.S. rollout by the end of calendar 2027 ([FedEx FY2026 10-K](https://www.stocktitan.net/sec-filings/FDX/10-k-fedex-corp-files-annual-report-85e6fe8dc5e3.html)). More than 200 stations have already closed, with over 475 targeted by the end of 2027, about 30% of the facility footprint, and FedEx has said 65% of eligible daily volume will run through optimized facilities by this year's peak ([Supply Chain Dive](https://www.supplychaindive.com/news/fedex-network-2-station-closures-2026/812251/)). Where it has been implemented, Network 2.0 has cut pickup-and-delivery cost by 10% ([Supply Chain Dive](https://www.supplychaindive.com/news/fedex-network-2-station-closures-2026/812251/)). Read that as a contractor and it means something specific: FedEx is getting the same packages delivered with fewer stations, fewer routes, and fewer contractors, and it intends to keep doing so. We travel the country holding Network 2.0 sessions, and after enough conversations a pattern becomes impossible to ignore. Contractors are sorting themselves into three groups, and the sorting is happening whether they participate in it or not. This post lays out the three types, what the data says about who makes it and who does not, where we believe the FedEx contractor model will be in five years, and what a contractor needs to do now to be one of the businesses that model is built around. [Read More](https://info.etruckbizforfxg.com/blog/survivor-operator-or-builder-which-two-will-still-be-here-in-2031) 0 Comments [Click here to read/write comments](https://info.etruckbizforfxg.com/blog/survivor-operator-or-builder-which-two-will-still-be-here-in-2031#comments-listing) Topics: [Business Outlook](https://info.etruckbizforfxg.com/blog/topic/business-outlook), [Business Results](https://info.etruckbizforfxg.com/blog/topic/business-results), [FedEx](https://info.etruckbizforfxg.com/blog/topic/fedex), [Management](https://info.etruckbizforfxg.com/blog/topic/management), [Business](https://info.etruckbizforfxg.com/blog/topic/business), [Contract](https://info.etruckbizforfxg.com/blog/topic/contract), [Financial](https://info.etruckbizforfxg.com/blog/topic/financial), [Network 2.0](https://info.etruckbizforfxg.com/blog/topic/network-2-0), [Margins](https://info.etruckbizforfxg.com/blog/topic/margins), [Medal](https://info.etruckbizforfxg.com/blog/topic/medal), [Bronze](https://info.etruckbizforfxg.com/blog/topic/bronze), [Budget](https://info.etruckbizforfxg.com/blog/topic/budget), [Plan](https://info.etruckbizforfxg.com/blog/topic/plan), [BC](https://info.etruckbizforfxg.com/blog/topic/bc), [Forecast](https://info.etruckbizforfxg.com/blog/topic/forecast), [Business Growth & Support System](https://info.etruckbizforfxg.com/blog/topic/business-growth-support-system), [Sale](https://info.etruckbizforfxg.com/blog/topic/sale), [Renewal](https://info.etruckbizforfxg.com/blog/topic/renewal), [Owner's Benefit](https://info.etruckbizforfxg.com/blog/topic/owners-benefit), [Builder](https://info.etruckbizforfxg.com/blog/topic/builder), [Survivor](https://info.etruckbizforfxg.com/blog/topic/survivor) ## [How to Convert Your Payroll From "Day-Pay" to Hourly: A Playbook SPs In Network 2.0](https://info.etruckbizforfxg.com/blog/how-to-convert-your-payroll-from-day-pay-to-hourly-a-playbook-for-fedex-csps) Posted by [Jeff Walczak](https://info.etruckbizforfxg.com/blog/author/jeff-walczak) on 8/19/26, 3:34 PM - [Tweet](https://twitter.com/share) [![](https://info.etruckbizforfxg.com/hubfs/Untitled-20260819-153118-9812.png)](https://info.etruckbizforfxg.com/blog/how-to-convert-your-payroll-from-day-pay-to-hourly-a-playbook-for-fedex-csps) For two decades or more, the flat day-rate has been the default way most Service Providers contracted to FedEx paid P&D drivers. It was simple, it was predictable, and it fit the old operating model perfectly: here's your route, here's your $170, get it done and go home. Industry surveys still show the fixed daily wage as the most common pay structure among contractors, with typical rates running $135 to $180 per day. [Network 2.0](https://info.etruckbizforfxg.com/blog/day-pay-is-costing-you-more-than-you-think-driver-compensation-in-the-fedex-network-2.0-era) is breaking that model. FedEx has now implemented Network 2.0 at approximately 360 locations, has fully converted Canada, and expects to complete the U.S. rollout by the end of calendar year 2027. As stations consolidate and Express volume flows into your dispatches, the workday stops looking like an assembly line — one driver, one route, one predictable finish time — and starts looking like a job shop: variable volume, variable shift lengths, staggered waves, and days that stretch or compress based on what actually shows up on the belt. A pay system built for "just get it done" does not survive contact with a shift-based operation. [Read More](https://info.etruckbizforfxg.com/blog/how-to-convert-your-payroll-from-day-pay-to-hourly-a-playbook-for-fedex-csps) 0 Comments [Click here to read/write comments](https://info.etruckbizforfxg.com/blog/how-to-convert-your-payroll-from-day-pay-to-hourly-a-playbook-for-fedex-csps#comments-listing) Topics: [FedEx](https://info.etruckbizforfxg.com/blog/topic/fedex), [Management](https://info.etruckbizforfxg.com/blog/topic/management), [Payroll](https://info.etruckbizforfxg.com/blog/topic/payroll), [Scheduling](https://info.etruckbizforfxg.com/blog/topic/scheduling), [BC](https://info.etruckbizforfxg.com/blog/topic/bc), [Driver](https://info.etruckbizforfxg.com/blog/topic/driver), [Business Growth & Support System](https://info.etruckbizforfxg.com/blog/topic/business-growth-support-system), [Administration](https://info.etruckbizforfxg.com/blog/topic/administration), [Driver Pay](https://info.etruckbizforfxg.com/blog/topic/driver-pay), [Day-Pay](https://info.etruckbizforfxg.com/blog/topic/day-pay), [Hourly Pay](https://info.etruckbizforfxg.com/blog/topic/hourly-pay) ## [What Non-Revenue Producing Tasks Could Be Costing You](https://info.etruckbizforfxg.com/blog/what-non-revenue-producing-tasks-could-be-costing-you) Posted by [Jeff Walczak](https://info.etruckbizforfxg.com/blog/author/jeff-walczak) on 6/5/26, 8:00 AM - [Tweet](https://twitter.com/share) [![](https://info.etruckbizforfxg.com/hubfs/Time%20Options.png)](https://info.etruckbizforfxg.com/blog/what-non-revenue-producing-tasks-could-be-costing-you) Network 2.0 changed the job description of every FedEx Contracted Service Provider. What used to be a business that rewarded volume and operational consistency has become a business that punishes inattention. Time-definite commitments, consolidated Express and Ground dispatches, new CSA structures, and tightening performance standards mean that the window for error — and for distraction — has never been smaller. Every hour your attention is buried in payroll entries, compliance paperwork, driver screening, or administrative follow-ups is an hour that should have been spent on the field-level / truck-level work that actually determines whether your operation succeeds or fails. That is not a philosophical point. It is a financial one. If your service metrics suffer because your BC was on the phone chasing a vendor issue instead of monitoring time-definite commit windows, the cost is measured in decreased productivity, missed TD service , and — eventually — your standing with FedEx. If your drivers are running suboptimal routes because no one had time to review and engineer them properly, you are burning fuel, driver hours, and stop productivity every single dispatch. The administrative burden that feels like a nuisance is actually a slow leak on your profitability, and in the Network 2.0 environment, slow leaks become fast ones. This is precisely why eTruckBiz built [AdminIQ](https://www.etruckbiz.com/adminiq) into the[Business Growth and Support System](https://www.etruckbiz.com/). AdminIQ handles the non-revenue-producing administrative work so that you and your management team don't have to. But the value of AdminIQ is not just what it does — it is what it frees you to do instead. This post identifies the seven highest-value activities that contractors who recapture their time should be executing, and explains why each one has a direct and measurable impact on profitability in the new FedEx operating environment. [Read More](https://info.etruckbizforfxg.com/blog/what-non-revenue-producing-tasks-could-be-costing-you) 0 Comments [Click here to read/write comments](https://info.etruckbizforfxg.com/blog/what-non-revenue-producing-tasks-could-be-costing-you#comments-listing) Topics: [Business Planning](https://info.etruckbizforfxg.com/blog/topic/business-planning), [FedEx](https://info.etruckbizforfxg.com/blog/topic/fedex), [Payroll](https://info.etruckbizforfxg.com/blog/topic/payroll), [ISP](https://info.etruckbizforfxg.com/blog/topic/isp), [Investment](https://info.etruckbizforfxg.com/blog/topic/investment), [Costs](https://info.etruckbizforfxg.com/blog/topic/costs), [Network 2.0](https://info.etruckbizforfxg.com/blog/topic/network-2-0), [BOSS](https://info.etruckbizforfxg.com/blog/topic/boss), [CSA](https://info.etruckbizforfxg.com/blog/topic/csa), [BC](https://info.etruckbizforfxg.com/blog/topic/bc), [Driver](https://info.etruckbizforfxg.com/blog/topic/driver), [AdminIQ](https://info.etruckbizforfxg.com/blog/topic/adminiq), [Business Growth & Support System](https://info.etruckbizforfxg.com/blog/topic/business-growth-support-system), [Administration](https://info.etruckbizforfxg.com/blog/topic/administration), [3rd Party Support](https://info.etruckbizforfxg.com/blog/topic/3rd-party-support) ## [Day-Pay Is Costing You More Than You Think: Driver Compensation in the FedEx Network 2.0 Era](https://info.etruckbizforfxg.com/blog/day-pay-is-costing-you-more-than-you-think-driver-compensation-in-the-fedex-network-2.0-era) Posted by [Jeff Walczak](https://info.etruckbizforfxg.com/blog/author/jeff-walczak) on 5/8/26, 6:30 AM - [Tweet](https://twitter.com/share) [![](https://info.etruckbizforfxg.com/hubfs/Day-Pay.png)](https://info.etruckbizforfxg.com/blog/day-pay-is-costing-you-more-than-you-think-driver-compensation-in-the-fedex-network-2.0-era) Network 2.0 has fundamentally changed the economics of FedEx contracting. The consolidation of Express and Ground into a single network has added new dispatch complexity, expanded service area requirements, and tightened the operational tolerances under which your settlement is engineered. In that environment, every cost variable matters — and no cost variable carries more weight than driver compensation. It is your largest expense by a wide margin, and how you structure it determines whether your business survives volume cycles or gets destroyed by them. [Read More](https://info.etruckbizforfxg.com/blog/day-pay-is-costing-you-more-than-you-think-driver-compensation-in-the-fedex-network-2.0-era) 0 Comments [Click here to read/write comments](https://info.etruckbizforfxg.com/blog/day-pay-is-costing-you-more-than-you-think-driver-compensation-in-the-fedex-network-2.0-era#comments-listing) Topics: [Business Results](https://info.etruckbizforfxg.com/blog/topic/business-results), [Payroll](https://info.etruckbizforfxg.com/blog/topic/payroll), [Contract](https://info.etruckbizforfxg.com/blog/topic/contract), [Costs](https://info.etruckbizforfxg.com/blog/topic/costs), [Network 2.0](https://info.etruckbizforfxg.com/blog/topic/network-2-0), [BC](https://info.etruckbizforfxg.com/blog/topic/bc), [Business Growth & Support System](https://info.etruckbizforfxg.com/blog/topic/business-growth-support-system), [BudgetIQ](https://info.etruckbizforfxg.com/blog/topic/budgetiq), [Dispatch](https://info.etruckbizforfxg.com/blog/topic/dispatch), [Driver Pay](https://info.etruckbizforfxg.com/blog/topic/driver-pay) ## [Is Your BC Network 2.0 Ready?](https://info.etruckbizforfxg.com/blog/is-your-bc-network-2.0-ready) Posted by [Jeff Walczak](https://info.etruckbizforfxg.com/blog/author/jeff-walczak) on 5/11/25, 3:42 PM - [Tweet](https://twitter.com/share) [![](https://info.etruckbizforfxg.com/hubfs/Are%20You%20Ready.png)](https://info.etruckbizforfxg.com/blog/is-your-bc-network-2.0-ready) The shift to **Network 2.0** is transforming how FedEx contractors operate their businesses. With new challenges such as time-definites, same-day on-call pickups, existing driver cultures, and advanced route engineering, navigating this transition is no small task. At the center of it all lies one critical question: Is your **Business Contact (BC)** equipped to lead your business effectively into this new frontier? Your BC is more than just a point person. They steer the ship, influence the culture, and set the tone for progress or stagnation. Contractors who have moved into Network 2.0 have learned the hard way that an unsuccessful BC can mean the downfall of their business. This post  will help you determine whether your BC is ready to help you thrive in this new era or if it’s time to make a change. [Read More](https://info.etruckbizforfxg.com/blog/is-your-bc-network-2.0-ready) 0 Comments [Click here to read/write comments](https://info.etruckbizforfxg.com/blog/is-your-bc-network-2.0-ready#comments-listing) Topics: [FedEx](https://info.etruckbizforfxg.com/blog/topic/fedex), [Business](https://info.etruckbizforfxg.com/blog/topic/business), [Contract](https://info.etruckbizforfxg.com/blog/topic/contract), [contractor](https://info.etruckbizforfxg.com/blog/topic/contractor), [Network 2.0](https://info.etruckbizforfxg.com/blog/topic/network-2-0), [time definite](https://info.etruckbizforfxg.com/blog/topic/time-definite), [BC](https://info.etruckbizforfxg.com/blog/topic/bc) [All posts](https://info.etruckbizforfxg.com/blog/all) ## Independent Service Provider (ISP) Tips And Advice ### Learn From Industry Experts And Successful Contractors Get valuable, actionable information from our founder and other industry participants that also have a deep understanding of your business and want to help you maximize your opportunity. 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