Question: Is It Worth Buying A FedEx Route?

Is FedEx route a good investment?

As a relatively sound and stable investment, FedEx routes can show an average increase of 15% per year.

You can spend countless nights wondering how much does it cost to buy a FedEx route, but you would be better served to understand the benefits and opportunity that being an operator can present..

Can you purchase a FedEx route?

Types of Routes You Can Buy The FedEx Ground routes are further separated into pickup and Delivery (P&D), and Linehaul routes. … FedEx Ground: These consist of routes with residential and/or commercial customers.

How much does a FedEx driver make an hour?

How much does a Delivery Driver make at FedEx in the United States? Average FedEx Delivery Driver hourly pay in the United States is approximately $17.99, which is 18% above the national average.

How do I get a FedEx delivery contract?

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.

How far do FedEx trucks drive?

Originally Answered: how many miles per day does a FedEx or UPS driver drive on average? That answer varies from hub to hub, route to route. In my hub, there are several routes that average maybe 5 miles a day total, whereas the route I run averages 75-80 miles a day.

How much do you make owning a FedEx route?

A route owner can make an annual profit of $30,000 to $50,000 on a single route, he said. Each business has a unique contract with FedEx that outlines the terms of how they’ll be paid. FedEx usually pays route owners based on how many stops the truck makes and how many packages the driver picks up and delivers.

Why are so many FedEx routes for sale?

Investors that purchase routes for sale with some or significant room for efficiency improvements, can often get these routes under market value. Rarely, do we see contractors lose their contract with FedEx Ground. If they do, it’s a result of repeated safety concerns or customer service issues.

How does owning a FedEx route work?

In a nutshell, route owners inherit an established book of business and need to purchase the equipment necessary to successfully do the work. When it comes to FedEx routes, individual owners set their workers pay, which can be hourly or daily. Within legal and FedEx guidelines, the owner sets the wage and frequency.

Can you finance a FedEx route?

How to finance your FedEx route purchase. There are a number of ways to finance a business acquisition. However, most FedEx routes that we have seen are financed using one, or all, of the following options: SBA-backed loans.

How many FedEx routes can you own?

5 routesTypically, owning up to 5 routes is manageable for a single owner, and can result in a great return. There is some risk, and more routes means more trucks and drivers, and a lot more responsibility. However, with that comes profit. Accruing more FedEx routes can be the savviest investment you make!

Do FedEx drivers take their trucks home?

They are assigned by the company. No FedEx supplies the truck. Fed Ex Ground is a company where different people own the route and the driver works for that owner and pay.

Do FedEx drivers load their own trucks?

Yes, the drivers have to buy their own trucks, but the trucks have to be exactly as required by FedEx.