Question: How Does Owning A FedEx Route Work?

Are FedEx routes worth it?

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..

Who makes more money UPS or FedEx drivers?

Salaries. UPS has 13,090 more total submitted salaries than FedEx.

Is owning a FedEx route profitable?

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 does a FedEx driver make an hour?

The typical FedEx Delivery Driver salary is $19. Delivery Driver salaries at FedEx can range from $11 – $38.

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.

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 do I finance a FedEx route?

If you are considering financing an operation of FedEx Ground routes, the two most common types of loans are a Small Business Association loan and a conventional loan. However, you can also use a creative financing approach, which can significantly expedite the selling process.

Is FedEx driver a good job?

Fair pay, good benefits, great atmosphere. Work is pretty good, but no benefits and no advancement make it pretty dead end. It’s a good place to get experience for a better driving job, or a good place to pay the bills while you invest in yourself for bigger and better things.

Are FedEx benefits good?

As part of our commitment to our people, FedEx Ground offers a group benefit program where monthly premiums are 100% paid by the Company. Employees are eligible for extended health and dental coverage after 90 days of service. Additionally, employees are also provided an Employee Assistance Program (EAP).

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.

How does buying a FedEx route work?

To own a route with FedEx, you will have to sign a contract with FedEx and become an independent contractor. This means you are not an employee of FedEx and will not receive health insurance, a retirement plan, or other benefits from FedEx. Additionally, FedEx requires that your business is set up as a Corporation.

Why are so many FedEx routes for sale?

Retirement is the most common reason prompting a FedEx ISP to sell their route. The FedEx Ground brand officially launched in 2000, so many contractors have delivered packages for more than twenty years. … By selling their routes, retiring owners can also add a nice boost to their nest egg.

Can I buy a FedEx route?

Yes. There are essentially two basic types of routes that you can purchase from FedEx. The first is “FedEx Pick-up and Delivery Ground” routes, which involve deliveries to both residential and commercial addresses. There are also pick-ups, usually at businesses, but sometimes at residential locations as well.