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How much do FedEx ground route owners make?
$30,000 to $50,000
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 much does it cost to open a FedEx?
That said, your primary startup costs will be for your routes and vehicles. FedEx routes are available all across the country. Depending on the type of route you are considering (P&D vs. linehaul), a single route may cost anywhere from $100,000 to $400,000, depending on its profitability, location, fleet, etc.
Why are people selling FedEx route?
An ISP Wants to Retire 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.
How do I become a FedEx ground carrier?
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.
What should I know before buying a FedEx route?
Before beginning the search for a FedEx route, you should narrow down the type of route you would like to purchase. There are two types of business opportunities available to contractors; FedEx Ground, which is the most common type of route, and Custom Critical.
Do FedEx drivers have to 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. And FedEx says the employees have freedom to determine how to do their job, but really, they don’t.
What is a FedEx line haul route?
A linehaul run structures their drivers as either solo drivers or team drivers. Solo drivers cover shorter distances between each point and, typically, the driver returns to home base at the end of each shift. Driving teams usually consist of two drivers on cross-country runs, rotating behind the wheel.
How much is a FedEx route worth?
How Much Are FedEx Routes Worth? On average, a FedEx route is worth between 2.5 times and 3 times the free cash flow that it generates. The annual profit per route is between $30,000 and $40,000 per year, so if you multiply that amount by the industry multiple, you get a range between $75,000 and $120,000 per route.
Is FedEx line haul a good business?
Linehaul runs are a lucrative and risky business. Some contractors say linehaul runs are 90% boredom and 10% terror. But they can be an incredibly profitable investment for the right contractor.
Are delivery routes profitable?
Delivery routes (known simply as “routes”) are profitable investments, with many advantages. In most instances, you are not only buying the route, with an established book of business, but you also purchase the equipment needed to do the work. This means you have income generating from day one.
Why does FedEx ground use contractors?
FedEx Ground says its independent contractor model motivates drivers to work harder and smarter because the more the company succeeds, the more money they can make. The more packages delivered, the more money the driver can make.