Dive Brief:
- FedEx Express is recruiting 700 flexible, part-time employees in 160 U.S. markets to "supplement [its] regularly scheduled courier workforce," a FedEx spokesperson told Supply Chain Dive in an email. Reuters first reported the news.
- "This helps us handle fluctuations in daily and weekly volume," the spokesperson said. The flexible drivers choose their shifts and can apply for permanent positions with FedEx Express if they desire.
- The spokesperson did not specify how much FedEx plans to pay the drivers. The drivers will use company vehicles to deliver packages and receive an hourly wage of $17.10 in most markets, according to Reuters. Glassdoor.com reports the average Express driver salary ranges from $16 to $32 per hour.
Dive Insight:
For several months, FedEx has been on a streak of expanding its B2C delivery offerings. Each move to amplify service, whether through additional days, hours or employees, is framed in the context of needing to handle growing parcel volumes due to e-commerce.
Last week, the company announced FedEx Ground would deliver packages seven days per week year-round, an offering previously available only during peak seasons.
In the same announcement, FedEx said it would leverage its own network for SmartPost packages, which previously were handed off to the U.S. Postal Service for last-mile deliveries.
Hiring drivers in residential markets will help FedEx expand its ability to deliver in the last mile. The use of flexible, part-time drivers could also save costs in this notoriously expensive step of the supply chain. While it's unclear whether hourly wages for the flexible workforce will be on par with full-time employees, the part-time workers are unlikely to earn benefits, saving costs for FedEx.
The program bears some resemblance to Amazon's delivery driver program, which provides training and funding for entrepreneurs to set up small businesses to deliver Amazon packages. The expansion of FedEx Express, which promises "fast time-definite shipping" is another play in the speed game, a seemingly competitive move as Amazon shifts to one-day delivery and big-box retailers follow suit.
