Understand the Pros and Cons of FedEx Ground Route Types and Find the Right Business for You
There are two distinct types of FedEx Ground routes, and if you are considering buying a FedEx Ground route, it’s important to figure out if you want to purchase pick-up and delivery (P&D) routes or a linehaul run.
There are important and significant difference between FedEx Ground P&D routes and FedEx Ground linehaul runs.
What is a FedEx Ground P&D route?
In our experience as contractors, pickup and delivery is a great place to enter the FedEx Ground space for the first time. As a routine business, P&D is easy to learn and simple to operate.
P&D operations deliver to local homes and businesses in a designated territory.
There are two sides to the P&D coin: home delivery routes and ground routes. Historically, contractors could have either home delivery routes, grounds routes, or both. Along with the FedEx Ground transition to all Independent Service Providers (ISPs), FedEx Ground will require a contractor to operate both home delivery routes and ground routes within a given area by May 2020.
The P&D home delivery routes:
Primarily deliver to residential households.
Operate Tuesday through Saturday.
Have smaller to medium trucks and boxes.
Have high seasonal variability (with businesses often making a large part of annual revenue in the four weeks leading up to Christmas).
Ground routes are the other side of P&D routes.
Ground routes feature:
Deliveries primarily to commercial businesses.
Heavier packages and larger trucks.
Routes that run Monday through Friday.
Less seasonal variability than home delivery routes.
What is a FedEx Ground linehaul run?
You can think of FedEx Ground P&D routes as the box trucks you see out and about in your community. Conversely, you can think of the FedEx Ground linehaul runs as the semi-trucks you see on the highway.
Linehaul runs feature:
Long distance transport, ranging from several hundred to several thousand miles.
Strenuous driver requirements, including a valid CDL license.
Semi-trucks: 18-wheelers that are expensive to buy and expensive to repair.
Varied types of linehaul runs, including solo, team, designated, and unassigned.
Known risks: semi-truck accidents in linehaul runs may result in significant injuries or fatalities.
What's the right FedEx Ground business for you?
For many new contractors, it can be easier to begin with FedEx Ground P&D routes and then level up to linehaul runs.
Linehaul is both 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.
If you want to talk to contractors who run both P&D routes and linehaul runs about which type of FedEx Ground business is right for you contact us and we are happy to help.
Maybe you have a pretty good handle on all this, but an extra check wouldn't hurt? Download our free New Contractor Startup Checklist.
Check out our listing page for both P&D routes and linehaul runs currently on the market.