Quick Answer: Does FedEx Sell Delivery Routes?

Why are so many FedEx routes for sale?

FedEx Ground contractors cite many reasons for selling FedEx Ground routes.

Many of our sellers are ready to retire, spend more time with family, or focus their business efforts elsewhere.

We also often post FedEx routes for sale that represent only a portion of one contractor’s business..

How much do FedEx line haul drivers make?

Average FedEx Line Haul Contractor Truck Driver yearly pay in the United States is approximately $88,262, which is 25% above the national average.

How do I become an independent contractor for FedEx?

The qualifications for work as an independent contractor for FedEx Ground include: At least one year of commercial driving experience within the last three years; Have no record of positive alcohol or drug test; Have a current commercial driver’s license; and.

Should I buy FedEx routes?

Benefits of Owning a FedEx P&D Route Compared to Linehaul routes, P&D routes tend to be smaller and less expensive to purchase. The P&D trucks themselves are also smaller and require a smaller capital expenditure. The routes will generally cover fewer miles will have fewer driver requirements.

Do FedEx drivers buy their own trucks?

Yes, the drivers have to buy their own trucks, but the trucks have to be exactly as required by FedEx. Yes, the drivers have to buy their own uniforms, but it has to be, well, a FedEx uniform.

Can you buy a UPS route?

Fedex and UPS aren’t franchises. Their routes aren’t sold or bought. Their drivers are employees that are assigned a route. The route is determined by corporate (and computers), not by the driver.

How much does a Pepsi route cost?

The average truck route costs about $150,000, says Mr. Sussman, but prices vary widely. A Pepsi route in Queens netting $1,600 a week just hit the market for $439,000, he says.

Does FedEx sell routes?

Types of Routes You Can Buy There are two types of business opportunities available to contractors; FedEx Ground, which is the most common type of route, and Custom Critical. The FedEx Ground routes are further separated into pickup and Delivery (P&D), and Linehaul routes.

How does FedEx plan delivery routes?

FedEx customers can create a shipment or schedule a pickup a number of ways: via FedEx’s website, by calling the FedEx toll-free line, or by walking into their closest FedEx store. Once orders are processed in the FedEx system, they are automatically assigned to a particular route by zip or postal code.

Do FedEx routes make money?

While a very profitable business, FedEx route businesses do not generate profit margins of 30% or more. … As you look to buy a FedEx Ground route, look for P&D businesses with profit margins between 10%-25% of revenue.

How much are FedEx routes worth?

All these factors in mind, the average annual profit for a FedEx route has been reported at between $30,000 – $40,000.

How much does a FedEx contractor make per package?

Fedex Ground Independent Contractor SalaryAnnual SalaryWeekly PayTop Earners$96,000$1,84675th Percentile$67,000$1,288Average$56,451$1,08525th Percentile$34,500$663

Is buying a route a good investment?

Buying a bread route can be a good investment, but, like any job, there are pros and cons to owning a route business. The pros are that you get to be your own boss, set your own hours, make a steady income, and grow your business to increase your earnings.

How much do FedEx owner operators make?

Average FedEx Owner Operator Driver yearly pay in the United States is approximately $49,807, which is 74% below the national average. Salary information comes from 17 data points collected directly from employees, users, and past and present job advertisements on Indeed in the past 36 months.

How do I evaluate a FedEx route?

Find the Value of Your RoutesStep 1: Compile a Profit and Loss Statement. … Step 2: “Normalizing” the Profit and Loss Statement. … Step 3: Identity Shareholder Compensation. … Step 4: Determine Industry Multiple.