Get the Skinny on Buying FedEx Ground Routes and FedEx Home Delivery Routes
If you are considering investing in a FedEx Ground route for the first time we recommend starting with a pickup and delivery (P&D) FedEx Ground business. A Fedex Ground P&D route business is easy to learn and simple to operate.
The Structure of a FedEx Ground P&D Route
FedEx Ground P&D operations deliver to local homes and businesses in a designated territory, outlined in your Independent Contractor (IC) or Independent Service Provider (ISP) contract.
There are two sides to the P&D coin: home delivery routes and ground routes. (Yes: it’s super weird and also accurate to say FedEx Ground ground routes!)
Historically, contractors could have either home delivery routes, grounds routes, or both.
Along with the FedEx Ground transition to all ISPs, FedEx Ground will require a contractor to operate both home delivery routes and ground routes within a given area by May 2020.
The FedEx Ground 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.
FedEx Ground ground routes feature:
Delivers primarily to commercial businesses.
Heavier packages and larger trucks.
Routes that run Monday through Friday.
Less seasonal variability than home delivery routes.
The Pros and Cons of a FedEx Ground P&D Route
Easier to hire drivers
Concentrated geographic territory
Lower risk than linehaul runs
Ability to increase business size and ramp up operations
Lower gross profit than linehaul runs
You must own both ground routes and home delivery routes in your territory (this can also be a pro: overlap may be a pain, but it also increases the efficiency of the operation and can increase the profit)
Intense seasonal variability within home delivery routes
Are you the right investor for a FedEx Ground P&D Route?
While the average investor in a FedEx Ground route varies widely, we do notice a number of similarities among those who buy a FedEx Ground route:
You might be the right investor to buy a Fedex Ground route if you:
Have some type of business background
Previously owned or operated a company with employees
Have experience making payroll
Know how to manage customers and customer issues/concerns
Understand business financials and the basics of investment
Have a sense for how you will fund or finance a FedEx Ground route investment
We’d love to talk with you more about FedEx Ground P&D routes and how to evaluate the routes for sale.