FedEx invests $100 million in delivery van safety

FedEx is spending $100 million on improving the safety features of its delivery vans, looking ahead to increased e-commerce demand and the prospect of more vehicles on the road.

FedEx Ground is offering £1,500 per vehicle to contractors to install cameras and sensors, which will give drivers warning of obstacles and of the presence of other vehicles.

Contractors operate around 72,000 vehicles overall, making it a pricey venture. The investment is despite a current pinch on revenue as the company faces rising costs in other areas, such as wages, and profits slow down after the pandemic surge.

However, it’s a cost-saving measure for the company in the long run. The monitoring equipment will help to reduce collisions due to blind spots and manoeuvres such as turning and reversing, meaning fewer pay-outs and vehicle damage costs.

As of last month, FedEx also requires contractors to install video-recording devices, which help to reduce false claims as vehicle manoeuvres can be evidenced.

Source: Bloomberg

Header image: Zain Saleem