FedEx to Spend $100 Million on Boosting Delivery-Van Safety
- Funds to pay Ground unit contractors for collision avoidance
- Expense comes as profit pinched by rising costs, slower growth
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FedEx Corp. plans to spend more than $100 million to improve delivery-van safety and reduce costs from accidents, potentially dragging on short-term earnings as the courier faces pressure from rising wages and other expenses.
The company’s Ground unit is offering $1,500 per vehicle to reimburse its contractors for installing cameras and sensors that warn drivers of obstacles or other vehicles, according to documents viewed by Bloomberg News. The unit’s contractors operate about 72,000 vehicles, FedEx said.