The Business of Independent Service Provider Contracting

Peak season can make or break your entire year as a FedEx contractor. One successful peak might fund your operations for months, while a poorly managed one can drain profits faster than you thought possible.

FedEx's 2025 peak projections are already creating some confusion in the contractor community. Some reports suggest record-breaking volume increases, while others hint at more modest growth. Veteran contractors will tell you that inconsistency isn't just frustrating—it's financially dangerous.

Whether forecasts run too high or too low, inaccurate predictions drain contractor profits either way. Overstaff for volume that never materializes, and you're paying unnecessary wages. Understaff when packages surge, and you risk service failures that could jeopardize your contract.

Topics: FedEx, Management, Training, Business, Costs, Financial, Network 2.0, Amazon, Volume, Forecast

As you know, the FedEx space is evolving rapidly, and along with it comes an unprecedented opportunity. Network 2.0 initiatives are reshaping the landscape, creating additional pathways for new revenue. Ambitious service providers can expand from single-facility operators to multi-facility enterprises. This transformation represents the future of FedEx contracting—but it also introduces complexity that can overwhelm unprepared contractors.

The difference between thriving expansion and operational chaos comes down to one critical factor: standardization. Contractors who implement consistent administrative systems and operational processes across all locations position themselves for sustainable growth.

Topics: FedEx, Bookeeping, Management, Payroll, Business, Contract, Network 2.0, Software, Fleet Management, CSA, Expansion, Grow, AdminIQ, Business Growth System

Your most valuable assets aren't sitting in the FedEx terminal van line—they're the people sitting behind the wheel. While trucks depreciate and technology becomes outdated, a strong team multiplies in value over time. Building a high-performance culture isn't just about finding good drivers; it's about creating an environment where top talent thrives, stays, and helps your business grow.

The transportation industry faces unprecedented challenges. Driver shortages continue to impact operations nationwide, while rising operational costs squeeze profit margins. Service providers who focus solely on equipment and logistics often struggle to maintain consistent performance. The difference between thriving businesses and struggling ones often comes down to one factor: their people.

We know that building and maintaining a strong team culture is difficult to execute with today’s culture and constant compliance standard changes. Smart service providers understand that investing in team development isn't an expense—it's the foundation of sustainable growth. When you build systems for effective driver recruiting, comprehensive training, and long-term retention, you create a competitive advantage that compounds over time. Your best drivers become ambassadors who attract other quality candidates, creating a positive cycle that strengthens your entire operation. We are here to help you make this happen.

Topics: Driver Recruiting, Management, Business, leadership, Expansion, service provider, Team Building

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.

Topics: ISP Negotiation, Management, Business, Investment, Negotiation, time definite, routing solutions, future, Expansion, Grow, Wealth, Maximize

Managing a FedEx contracting business requires more than meeting delivery deadlines. Behind every successful operation is a business owner juggling multiple responsibilities—from vehicle maintenance to regulatory compliance. While the opportunity for profit is significant, the financial challenges contractors face can lead to overwhelming stress, especially without proper preparation or planning.

Topics: Business Structure, Business Planning, Bookeeping, Management, Business, settlement, Cash flow, expenses, Financial, Network 2.0, CSA, Plan

This week, Contracted Service Providers will be introduced to the future.

(Project Drive?) is going to be unveiled to the masses.

What this means for CSPs is that business going forward is not going to be business as usual. Long-standing operating practices are all about to be changed, and with them, accepted CSP systems & processes will need to adapt, or get left behind. 

A new type of operating awareness is about to rule the day. Those who embrace change will thrive. 

At eTruckBiz, we've been anticipating and tracking these changes for a long time now. As a result, we have been developing a new application to make all of these changes easier for contractors. In our opinion, managing these metrics moving forward will be absolutely critical to success as a FedEx Contractor. With that in mind, we are introducing the Biz Status Tracker completely free.

Topics: Management, Business Metrics, FedEx Ground, Dashboard, Network 2.0, Real time, definite, Software, time

By now, most of us have seen or heard the news that FedEx is rolling out a new system for rating contractor performance. 

Initial indications are that there will be three tiers (Gold, Silver & Bronze) and your operation will be classified as one tier or another based on several safety, service and customer experience metrics, on a monthly basis. Word out there is that some operating efficiency data will also be included, so productivity will be a part of this too.

It appears that the days of simply meeting contractually accepted service & safety performance standards to assure continued contracting participation are about to be gone.

So the question being asked is, what does this really mean for contractors?

Topics: Business Outlook, FedEx, Management, Business Metrics, FedEx Ground, Business, Dashboard

By any measure, it’s been, and continues to be, a challenging time to be running a transportation business. However, as we often see, there are many opportunities that present themselves during challenging times.

As we look ahead to better times in 2023, it’s important to take a look at where we are currently at and how we got here so that we avoid mistakes of the past.

Our current situation is rooted in the events of 2019. This period introduced the density-stop / ecommerce push from FedEx Ground. As ecommerce deliveries gained traction and increased in number, they fueled the deterioration of contractor per-stop operating margins.

As you know, ecommerce stops are paid at a lower rate and typically include fewer packages per stop vs. commercial stops, resulting in a stealthy revenue per stop decrease across your entire business.

Topics: Business Planning, Bookeeping, Management, Business Metrics, ISP, Business, Money, Cash flow, Inflation, Costs, Financial, Margins

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.

 

Topics: Law, Management, FedEx Ground, Business, Investment, Agreement, consulting, Money, settlement, renegotiation, Financial

Well, the time has finally come.

FedEx has officially announced the big move that we had known was coming for a long time.

The announcement that they will be combining most of the operating components of their networks will trigger significant operational changes. The plan does include utilizing mostly contractors, even though some are currently struggling.

Many will recall that we have been signaling for more than 5 years that a change was coming. By far the largest issue will be that the demands of the new network will force contractors who operate Lifestyle Businesses into operating Transportation Companies.

The time has come to put old habits behind and embrace change, or get left behind. 

Topics: FedEx, Management, Ground, Business, Contract, model, Money, Cash flow, renegotiation, Network 2.0, transformation

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?

Topics: Business Structure, Business Tools, Management, Training, Investment

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!

Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, leadership, consulting

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.

Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, Purchase, Fuel, Money

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.

Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, consulting, linehaul

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.

Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, leadership, consulting