Automotive Fleet
MenuMENU
SearchSEARCH

FedEx Ground Sues, Terminates Agreement of Largest Contractor

Spencer Patton, of Patton Logistics and Route Consultants, has publicly challenged FedEx Ground regarding strains to contractor profits involving fuel surcharges and Sunday deliveries.

Chris Brown
Chris BrownAssociate Publisher
Read Chris's Posts
August 29, 2022
FedEx Ground Sues, Terminates Agreement of Largest Contractor

Patton unveiled his #PurpleFriday initiative at an expo and conference his company convened in Las Vegas Aug. 19-21. Patton later told Automotive Fleet that FedEx Ground has not adequately addressed contractual issues such as Sunday service and allowing ISPs to share the benefits of fuel surcharges imposed on customers. He said that over 50% of FedEx Ground ISPs are operating at a loss today.

Photo: Chris Brown

3 min to read


FedEx Ground filed a lawsuit on Aug. 26 against the business of its largest contractor, Spencer Patton, for disparaging FedEx Ground through a series of alleged false and misleading statements about its commercial activities. The lawsuit seeks injunctive relief and unspecified monetary damages from Patton.

Hours after filing the lawsuit, FedEx Ground terminated all contracts with Patton's company, Patton Logistics. FedEx maintains that it has contingency plans to replace those routes and that service will not be interrupted.

Ad Loading...

Patton Logistics has about 275 trucks that served 225 FedEx Ground routes in 10 states. Patton, based in Brentwood, Tennessee, also owns Route Consultant, which advises and provides resources for FedEx Ground contractors, called ISPs (independent service providers). The lawsuit was filed against Route Consultant. 

Patton has been an outspoken advocate for the roughly 6,000 contractors that deliver packages for FedEx Ground. He has been delivering a public message that FedEx Ground has expanded its profit margins through proceeds from fuel surcharges without allowing contractors to share in those proceeds. He also maintains that FedEx Ground has not adequately addressed other strains on contractor profits such as Sunday deliveries.

In the lawsuit, FedEx Ground said Patton is urging ISPs to renegotiate their deals with the company as a way to drive business to Route Consultant. The suit alleges that Patton is overestimating the number of service providers in financial distress and that FedEx Ground is consenting to mid-contract negotiations with ISPs.

Patton pleaded the contractors’ case on Fox Business’ digital site, which has garnered over 1.2 million views. He also convened an expo and conference in Las Vegas Aug. 19-21, in which roughly half of the FedEx ISPs were in attendance. At the event and in the foreground of a #PurpleFriday screen, Patton told the audience that “I am unable to continue my business past Nov. 25, 2022” due to inflationary pressures and business conditions that have not been adequately addressed by FedEx Ground.

Directly after the event, though before the lawsuit and termination, Patton told Automotive Fleet that Nov. 25 establishes a timeline to FedEx Ground to restore “financial viability to the ownership of the routes.”

Ad Loading...

“Right now, I am losing money in my daily operations of my own FedEx Ground routes,” he said to AF. “As the largest contractor in the U.S. I will continue to provide service to FedEx Ground until November 25 of 2022. And many of my fellow contractors making their own independent business decisions have also said that November 25 will also be their last day of providing service to FedEx Ground if there is not a financial change.”

“More than 50% of FedEx Ground contractors are operating at a loss right now," he said. "And we're subsidizing FedEx Ground’s business. And that is just not a viable path forward.”

More Operations

SponsoredMay 15, 2026

Hybrids: Electrification Without the Challenges

For fleet managers, fuel is one of the biggest line items in the budget — and it's one hybrids can shrink without changing how your people work. Download the eBook to see the numbers, understand the technology, and get a step-by-step guide to making the switch.

Read More →
Man speaking during an Automotive Fleet interview beside text reading “The 60% Driver Improvement Nobody Expected!” with blue motion graphics background.
Operationsby Chris BrownMay 14, 2026

How NOV Uses Telematics to Improve Fleet Safety Across 160 Locations

James Victory of NOV discusses how the company manages fleet safety, maintenance, and telematics across more than 150 locations supporting oilfield operations throughout the U.S.

Read More →
A graphic with Ford Pro's Steven Sanstostasi's headshot on it representing the Fleet Meets series.
Operationsby Faith HowellMay 14, 2026

Fleet Meets: Steven Santostasi

This edition of the Fleet Meets series features Steven Santostasi, the current TSP channel manager for Ford Pro.

Read More →
Ad Loading...
Cover of a whitepaper titled “The Hidden Costs of Departmentally Assigned Vehicles on Your Fleet” featuring a black fleet vehicle driving on a road at sunset. Subheadline reads: “Discover how your fleet can reduce costs and minimize risk by implementing vehicle sharing.” The document focuses on fleet optimization, vehicle sharing, cost reduction, utilization tracking, and risk management for fleet operations.
SponsoredMay 13, 2026

Why Fleet Managers Are Replacing Departmental Vehicles with Shared Motor Pools

Departmentally assigned vehicles often create hidden costs through underutilization, poor visibility, and increased administrative burden. This white paper explores how shared motor pool strategies help fleets reduce costs, improve accountability, and optimize vehicle utilization.

Read More →
Three team members in shop with Chris
Operationsby Chris BrownMay 12, 2026

Soap Box Derby Challenge: Assembling the Crew

Meet Gabriel, Matthew, and Angel — the team helping bring this soap box derby build to life.

Read More →
Handshake graphic featuring BBL Fleet and Velcor Leasing Corporation logos announcing BBL Fleet’s acquisition of Velcor to expand fleet management services nationwide.
Operationsby News/Media ReleaseMay 8, 2026

BBL Fleet Acquires Velcor Leasing Corporation

BBL Fleet expanded its footprint in the fleet management industry with the acquisition of Velcor Leasing Corporation of Madison through a stock purchase agreement finalized Feb. 27, 2026.

Read More →
Ad Loading...
Graphic reading “What’s New From Lytx at Protect 2026?” over a blue digital network background highlighting Lytx fleet technology and AI-powered safety solutions.
Operationsby News/Media ReleaseMay 6, 2026

Lytx Introduces New AI Fleet Technologies at Protect 2026

The company introduced new AI-driven fleet safety and operations technologies during its annual user conference.

Read More →
Cover image for the “5th Annual Market Pulse Report” by Element titled “Navigating fleet management in 2026: Data and insights shaping the future of fleet and mobility.” The design features an aerial view of a cable-stayed bridge with vehicles traveling on a highway beside a dense green forest. A teal graphic panel overlays the lower portion of the image, with the Element logo and tagline “Intelligence in motion” at the bottom.
SponsoredMay 6, 2026

Fleet Costs Are Rising: Here’s How Leaders Are Responding

Fleet leaders are under pressure to reduce costs, adapt to economic uncertainty, and make smarter decisions. See how peers across North America are responding with real data, proven strategies, and forward-looking insights. Download the 2026 Market Pulse Report to benchmark your strategy and uncover where you can gain an edge.

Read More →
A blue Automotive Fleet graphic representing the weekly AF News Recap series.
Operationsby Faith HowellMay 4, 2026

From Waffle House to AI: Fleet Trends You Need to Know

In this AF news recap, host Faith Howell covers how Waffle House stepped up during disaster response and new AI tech on the market.

Read More →
Ad Loading...
OperationsApril 30, 2026

Fleet Operations in the Age of AI: Navigating Ethical and Legal Challenges

AI is no longer a future concept for fleets—it’s already embedded in the tools, data, and decisions that operators rely on every day. In this episode of the Fleet Forward Podcast, recorded live at Fleet Forward, industry leaders take the conversation beyond hype to examine what responsible AI adoption really looks like in fleet operations.

Read More →