FedEx is known for getting packages to people quickly and having excellent customer service by offering various services, including ground, air, and international shipping. FedEx set a big goal in January 2015 to hire one million drivers over the next 10 years.
FedEx also offers FedEx Home Delivery Mail Service, FedEx Ground Freight, FedEx Express Freight, FedEx International Priority, and other services hiring more than 300,000 people in more than 220 countries and territories worldwide to do these jobs.
Things You Need to Know When Becoming a FedEx Independent Contractor
Here are 4 things you need to know about becoming an independent contractor or service provider for FedEx.
1. FedEx Independent Contractors Requirements
Linehaul ground contractors move packages from one FedEx ground hub to another on long-distance routes. As a ground contractor, you must pay for your personal and business expenses.
To become a FedEx Independent Contractor, you must do the following:
- Have at least one year of commercial driving experience in the last three years.
- Have no history of failed tests for drugs or alcohol.
- Have a valid commercial driver’s license.
- Be able to go into Canada by crossing the border.
2. FedEx Independent Contractors’ Responsibilities
There are three main types of FedEx independent contractors, and here’s what they do:
● Custom Critical Owner Operator
These are the most important people at FedEx Custom Critical. This could be your job if you are willing to work hard and have trucks (or more than one).
● Ground Independent Contractor
The “long-haul” FedEx ground route is run by independent contractors who work on the ground. FedEx will give you a trailer, but you’ll need to bring your tractor. In this job, you must pay for your things.
● Home Delivery Independent Contractor
You are bringing things to the customers’ door. An independent contractor who does home delivery drives along a route and drops off packages. In this job, you must own your vehicle and pay all the business costs that come with it.
3. FedEx Independent Service Provider Requirements
The 5-route/500-daily deliveries requirement applies to the ISP model. Contractors must comply with the new ISP regulations, which call to overlap Ground and Home Delivery routes.
To meet the new ISP standards, some FedEx contractors who already have routes buy more routes or combine routes with other FedEx contractors. Many other contractors are selling their routes now rather than later instead of converting to the new model.
4. FedEx Independent Service Provider Responsibilities
To become an ISP Insurance Specialist, ISP contracts have some requirements. Some requirements can be negotiable by FedEx, and some of them won’t be negotiable. A few of them are:
● All Business Operations
An ISP is in charge of all business operations, including acquiring additional CSAs and must be legally incorporated under state law.
● Maintaining Vehicles
FedEx Independent Service Provider should own and maintain vehicles compliant with the FedEx Ground standards. This includes vehicle maintenance, inspections, driver training, and insurance requirements. You must also ensure that your trucks and drivers comply with all federal DOT regulations.
● Employment, Staffing, and Scheduling
ISPs are in charge of overseeing and staffing their group of employee drivers by supervising and assigning work and also by recruiting and training people. You will also need to determine pay rates and benefits by state and federal legislation and establish working hours, holidays, and vacations.
● Negotiating and Serving the Contracted Service Area
ISPs renegotiate CSA’s terms and choose the best approaches to meet their requirements.
Becoming a FedEx contractor is a great way to start your own business or grow one you already have. But suppose you want to be a successful FedEx contractor or Independent Service Provider. In that case, there are a few things you can’t forget. Here, we’ve summed up the most critical points, but you should read the whole article to learn more about each one.