Tips for Buying FedEx Delivery Routes

When you get a FedEx package, it’s delivered by small business owners who own the trucks and employ the delivery drivers.
Working within FedEx’s well-known delivery infrastructure is one way to launch a new business with the advantage of a strong, established brand name. Additionally, FedEx provides support for its delivery contractors.
Interested in buying a FedEx route? Here’s what you need to know.

How does owning a FedEx route work?

Each small business owner works under a contract with FedEx and must meet certain legal guidelines. This contract outlines the details of a particular route and includes an established book of business. FedEx route owners must purchase their own equipment and hire their own employees.

How do FedEx routes work as an entrepreneur?

If you’re curious about how to do business with FedEx and want to know how to get a FedEx ground route, you’re in the right place! Here’s how it works: Each small business owner works under a contract with FedEx and must meet certain legal guidelines. This contract outlines the details of a particular route and includes an established book of business. FedEx route owners must purchase their own equipment and hire their own employees. Even though you’ll learn how to start a FedEx route and be responsible for your own equipment, staffing, etc., you’re still representing FedEx.

What other equipment will I need to buy for a FedEx route?

Besides the actual cost of the route, you’ll also need to invest in equipment—specifically delivery vehicles—and be prepared to manage the expenses associated with facilities (either rented or your own home), assets (vehicles, computers, technology, etc.) and business software (financial, route planning, etc.). Online routing software, like MyRouteOnline, can make a FedEx delivery route more efficient—and profitable.

How many stops are on a FedEx route?

Route owners have a list of customers. The number of stops vary by route, which can reach more than 220 packages per day. Some business owners may have more than one route.

How much can you make owning a FedEx route?

Each business has a unique contract with FedEx that outlines the terms of how they’ll be paid. While profits can vary, industry experts estimate that FedEx routes can generate about 10%-25% of revenue. So, for example, if a FedEx route generates approximately $500,000 in revenue, then an average profit margin of 15% is $75,000. The work is generally very stable.

What type of FedEx routes are for sale?

You have three options: Custom Critical owner-operator, independent contractor, or Home Delivery independent contractor.

Custom Critical owner-operators make up FedEx’s entire Custom Critical fleet. If you own or plan to own your own vehicle, you might qualify for a FedEx owner-operator position.

Ground contractors move packages on the long-haul routes between FedEx ground locations. You have to provide your own tractor (or rig), but FedEx supplies the trailer.

A Home Delivery independent contractor is responsible for picking up packages and delivering packages to homes. You must lease your own delivery van and pick up the tab on fuel, insurance and other expenses related to your business.

Why are so many FedEx routes for sale?

FedEx routes are sold for the same reasons as other businesses. The most common reason is retirement. Additionally, FedEx may establish new routes in growing areas or locations where demand exceeds capacity.

How do I become a FedEx contractor?

As you can see from above, investing in becoming a FedEx delivery contractor or driver has many perks and can serve as a fruitful business venture. So, if you’re intrigued about the world of entrepreneurial delivery services and are now wondering how do you get a FedEx route – you’re on the right track. Below, we will tell you exactly how to apply for FedEx delivery routes and how to navigate the process best.
To become a FedEx contractor, get in touch with FedEx Recruiting, either by calling 1-866-711-3599 or filling out the contact form on FedEx’s company website. You’ll get all the information you need. When you are all set, make sure to visit MyRouteOnline to plan your delivery route with us. This will save you time as well as fuel, both are worth money.

How can I buy a FedEx Route: Steps to Ownership

Getting a FedEx route involves several key steps to ensure effective business ownership. Here’s a breakdown of the process:

Research and Assessment: Educate yourself on the various types of FedEx route types (with resources like this one!), such as Ground contractors, Home Delivery independent contractors, or Custom Critical owner-operators. Make sure you understand the responsibilities and actions of each route type.

Finances: As you should with any type of new business venture, ensure you’re in the right place financially to embark on a new endeavor. Remember there will be additional costs beyond purchasing the FedEx route, such as equipment, storage facilities, and operational costs.

Here is where you should reach out and express interest to FedEx via phone or contact form.

Application and Qualification: During this stage, FedEx will assess your qualifications, experience, and financial situation; make sure you put your best foot forward.

Contract Negotiation: If you’ve ever asked yourself, “How can I get a contract with FedEx?” well, now is the time to celebrate cause you’ve done it. Ensure you have a comprehensive understanding of everything within the contract, particularly your liabilities.

Route Purchase: Once everything is in order and the contract terms are agreed upon, your purchase of a FedEx route can surge forward. Thai includes getting at least one truck, additional equipment, and arranging storage.

Training and Onboarding: You must participate in FedEx’s training and onboarding program. This will help get you in the loop with their protocols, technology, and day-to-day operation systems.

Launch and Operations: It’s time! You no longer need to ponder, “How to get FedEx routes?” You can now officially launch your FedEx route business venture!

Key Success Factors:

Business Acumen: FedEx wants to see notable business management skills, such as financial management, employee supervision, route optimization, and customer interactions.

Operational Efficiency: Invest in technology and software like MyRouteOnline to streamline route planning and tracking. A thriving entrepreneur understands that success requires investments that will pay off in the long run.

Customer Service: Uphold exceptional customer service standards to cultivate a favorable reputation within your delivery region. Bad service can leave a bad mark.