FedEx dropped Amazon as a customer in 2019 due to competition concerns, leading Walmart to become a major parcel client. Walmart now focuses on expanding its last-mile delivery capabilities, using gig workers and other carriers like Roadie and DoorDash, causing a shift in parcel deliveries away from FedEx.

To compete in the B2C market, FedEx needs to revamp its delivery model by embracing gig workers for cost-effective home deliveries. Brand recognition is less crucial in B2C, emphasizing the need for low delivery costs. UPS struggles to compete due to high unionized driver costs, while FedEx aims to attract gig workers for efficient delivery.

Gig workers are crucial for home deliveries, with lightweight parcels dominating the B2C market. FedEx has the potential to build a gig worker delivery model, leveraging its brand to offer competitive rates. By utilizing a non-asset based last-mile delivery model, FedEx can replicate RPS’s success in the B2B market.

FedEx should capitalize on its brand to attract gig workers, aiming to build a large workforce for last-mile deliveries. By setting up an incubator to develop a B2C model using delivery agents, FedEx can rapidly expand its coverage and offer lower delivery costs than competitors. Time is of the essence before other delivery giants dominate the market.

FedEx’s potential to dominate the B2C delivery market lies in swiftly adopting a gig worker model. By leveraging its brand and existing infrastructure, FedEx can achieve high delivery density and cost efficiency. Major retailers like Costco and Target present growth opportunities for FedEx’s optimized delivery network.

Read more at Yahoo Finance: Adopt gig worker model and dominate B2C delivery