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Gig labor could have challenged FedEx and UPS. Now it's making them stronger.

Added 11-26-22 05:14:03am EST - “Instead of outlasting upstarts who challenged them with gig workers, UPS and FedEx have, in their own ways, embraced the approach.” - Businessinsider.com

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Posted By TheNewsCommenter: From Businessinsider.com: “Gig labor could have challenged FedEx and UPS. Now it's making them stronger.”. Below is an excerpt from the article.

At the height of the pandemic, it  looked like the gig economy was going to challenge traditional package delivery — the work that UPS and FedEx  have done for decades. 

Inundated with shipments, the big two package carriers raised prices and got picky about what packages they'd deliver. The result was annoyed customers looking for alternatives, and entrepreneurs seized the moment. 

A lot of those would-be competitors — companies like Axlehire and Veho  — built their operations on gig economy labor. 

Gig workers offer a lot of upside. Driving their own vehicles, wearing their own clothes, paid as they go and mostly without benefits — they're often much cheaper than salaried employees. The flexibility of a workforce that scales up and down fast is helpful in a time of volatile e-commerce demand that fluctuates with the season and the economy.  

While logistics veterans have been skeptical that this free-wheeling model can scale — or even survive long term — gig strategies have stuck around as e-commerce has slowed. It's clearly not just good for boom times. 

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