The Business of Independent Service Provider Contracting

Lately, we’ve been seeing a trend that is honestly pretty concerning. We are talking to more and more contractors who are selling parts of their business—or even the whole thing—by selling shares of their companies to unwitting buyers via the transfer of shares of company stock, without properly addressing the reassignment of their operating agreement.

There is a thought process, possibly being fueled by some unscrupulous brokers,  that is leading some to think that, "The company name isn't changing, so why does it matter?" But in the eyes of the contract, it matters a lot. We’ve seen people put their entire business at risk because they didn't realize that changing who owns the company is just as big a deal as changing who drives the trucks.

Wait! Read This First: > Before we dive in, let’s get one thing straight: We are not attorneys. We don't work for FedEx, and we aren't here to give you legal advice or tell you exactly how FedEx will act. We are just a team that has spent years in the trenches with contractors like you. We’ve seen almost every situation you can imagine, and we want to share what we’ve learned so you don’t make a costly mistake.

We aren't here to scare you, but we do want to wake you up. Whether you’ve been a contractor for ten years or you are looking to buy your very first operation, you need to understand that you can’t just "hand off" this business like a relay baton. There is a specific process you have to follow, or you might find yourself owning a company that no longer has a contract to operate.

As we move through the first quarter of 2026, the financial headlines are hard to miss: FedEx (FDX) stock is surging. On February 6th, shares closed at a robust $369.23, marking a significant climb from the $250 range we saw just months ago. For the corporate office in Memphis and for Wall Street investors, the message is clear: the ambitious "One FedEx" transformation is officially paying off.

But if you are a Service Provider, you might be looking at that ticker symbol and asking a more personal question: "If the enterprise is worth more than ever, when does that value reach my bottom line?"

Many successful FedEx contractors reach a point where they are ready to grow. With reliable returns and strong cash flow, a FedEx contracting business is an attractive model for expansion. However, this growth brings a critical decision: should you expand your operations close to home or pursue opportunities in remote locations?

While expanding can significantly boost your earnings power, the location of that new operation can make or break your success. We've compiled many of the common lessons and experiences from those who have already traveled this path and the findings are below.

Look, we get it. The dream is to grow. More routes, bigger fleet, more revenue—it’s the ultimate flex in the FedEx Ground world. You see other contractors acquiring new territories, and you think, "It's my time to scale."

But what if we told you that the secret to real, sustainable growth isn't about getting more, but about mastering what you already have?

It's a counterintuitive truth, but one that separates the players from the legends. The pros know that trying to expand a business with cracks in its foundation isn’t scaling; it’s just amplifying problems. A small inefficiency you can ignore today becomes a financial disaster in a larger operation. A minor staffing headache becomes a full-blown crisis.

This isn’t about discouraging ambition. It’s about building a business so solid, so smart, that when you’re ready to grow, FedEx practically hands you the keys.

This is the strategic playbook you need to read before you make your next move.

Many FedEx service providers start their journey with big dreams of financial success. They see the potential in the logistics industry and dive in headfirst, ready to work hard and build something meaningful. And rest assured knowing that for some, this does actually materialize. But here's what often happens: many get trapped in the day-to-day grind, constantly putting out fires, managing routes, and handling driver issues. Sound familiar?

The difference between contractors who struggle to make ends meet and those who build serious wealth isn't about working harder—it's about thinking differently. The most successful FedEx contractors have made a crucial mental shift: they've stopped thinking like operators and started thinking like investors.

This shift isn't just about mindset. It's about fundamentally changing how you view and run your business. When you make this transition, you're not just running a contracting operation—you're building a valuable asset that can generate wealth for years to come.

So as you might imagine, there is a considerable amount of chatter out there about some recent, controversial events.

Many want to know what we think about the whole situation.

We’re going to give you some thoughts, but I’d like to point out our perspective on the matter first.

Image by Lytx

This blog post is written by our friends at Lytx.

Why are KIs important to your business? We explain everything, from the metrics that matter the most to KI fleet management tips.

Keeping track of fleet management metrics is necessary in order to make objective decisions and improve performance over time. Tracking KIs is an important aspect of measuring efficiency and productivity and is integral to identifying problems and making corrections. Safety KIs, in particular, are essential to keeping your fleet running at optimum levels while ensuring minimal risk.

As you may know, FXG Contractors and their Managers have chosen eTruckBiz University for in depth training for almost a decade. Since our very first class in Huntsville, Alabama, we have received a tremendous response from those who understand the importance of continuous education. Thousands of hours have been spent updating, refreshing, and tweaking our curriculum. Why? Because it's critical to our customers' success.

Training your team is the same as putting fueling in your trucks. Without regularly filling up the tank, your people are running on fumes. 

In fact, FXG requires continuous safety lessons, right? That's because statistics prove when training stops, people assume it's no longer important. Hitting your Service Levels requires fuel in the trucks. Staying compliant with your Agreement requires completed safety lesson. And making your business profitable requires essential, off-site training for your key people.

However, some AO's still want to know why this type of training is important, and, is there a return on this investment? That's a great question.

Well, here are 9 reasons why the question shouldn't be if I should send my managers to the University, but how soon can we attend?

Image by Gustavofrazao

In a recent blog post, we adapted Stephen Covey’s habit of Begin With the End In MindⓇ for effectively running a FedEx Ground contracting business. The key point being that success is defined by starting each task, each day, and each project with a clear vision of your destination. Success is not only focusing on what looks good, it’s focusing on what really matters.

In this blog post, we’re adapting another of Covey’s habits called Put First Things FirstⓇ. Our intention is ensuring that you and everyone on your team knows which priorities come first. When drivers and managers understand what comes first - profitability - they will be better equipped to work with you in achieving your vision!

Image by Workhorse Group Inc.

This blog post is written by our friends at Workhorse Group Inc.

Tips for transitioning to an EV fleet and the benefits for your business.

The adoption of Battery Electric Vehicles (BEVs) for fleets with daily return to base routes under 200 miles is becoming a fast-growing segment of the EV marketplace. More than two-thirds of surveyed fleets that have used BEVs plan to either pilot or purchase them in the next 12 months. *

This move to EVs can be attributed to the significant operational savings and the positive environmental impacts of an EV fleet. With more and more fleet managers moving to EVs, you may ask yourself - Is an electric fleet right for my business? Here are a few things to consider.

Image by Dave Bowen

If you missed the “Maximizing Your Linehaul Potential” event held in Kansas City, here’s a brief recap of the day.

We and one of our strategically aligned partners, Rolling Equity Leasing (REL), hosted a daylong seminar examining FedEx Ground Linehaul Contracting. The presenters swiftly covered much ground. Much has changed from the old linehaul ways and more changes are on the way.

After quick introductions, the first presentation and following discussion predominantly impacted newcomers to linehaul contracting. Topics included subjects to focus on when starting, successful business habits, and thriving in a challenging market.

Image by Daniel Tadevoseyan

In a recent blog post, we adapted Stephen Covey’s habit of Be ProactiveⓇ, into a best practice of running a FedEx Ground contracting business. The key point being that success is consciously controlling what you can and not blaming what’s beyond your control for hindering your vision.

In this blog post, we’re adapting Covey’s habit of Begin With the End in Mind Ⓡ . This is defined by starting each task, each day, and each project with a clear vision of your destination. Being financially successful doesn’t happen by chance. Success is not only focusing on what looks good, it’s focusing on what really matters.

Image by Xos Trucks

This blog post is written by our friends at Xos Trucks.

The passenger transportation sector has seen a significant uptick in Electric Vehicle (EV) adoption over the last several years, yet the commercial side has been slower to follow.

Now, that’s changing. Increasing environmental regulations and a growing interest in reducing costs have begun to tip the scales toward more widespread fleet electrification.

As a fleet owner and operator, you might be asking yourself, “When, how, and why should I consider electric trucks for my business?” Unfortunately, there’s no simple, one-size-fits-all answer to “how” you should go about transitioning to electric, but “when” and “why” you should go electric can be more easily summarized.

Going electric can positively impact the efficiency and profitability of your business. Here’s a summary of the main reasons why you should consider electrifying your fleet.

Image by Fokusiert

Have you read Stephen Covey’s book titled 7 Habits of Highly Successful People? If so, have you thought about applying it to being a Contract Service Provider (CSP)?

We’re adapting the most relevant of his seven habits into best practices of highly successful CSP’s.

Covey’s first habit is Be ProactiveⓇ Focus and act on what you can control and influence, instead of what you can’t. This habit is especially important and a great starting point.

In this uncertain time, it seems like there was one thing that was certain.

It appeared that stops and volume were marching forward, with no regard for the turbulence and difficulty that we were told surrounds us. 

In a roughly 2+ year environment of growth, the rising revenue tide hid many tree stumps, and kept the good ship Contracted Service Provider sailing happily into the sunset.

All was well.

Until it wasn’t.

Recently, the volume has leveled off and in many cases, retreated.

This dip is not too much different from a “normal” summer, but this time, it hurts...bad. 

Let’s look at why.