FedEx Ground routes have predictable revenues with few variables. It’s what makes these businesses such solid investments!

If your revenue is predictable with few variables to significantly change it, then how do you impact your Net Operating Income (or take-home pay)? You focus on Total Expenses.

Understanding the valuations of an Amazon DSP business is a hot topic of conversation right now. With the constant growth of e-commerce, the transportation industry is skyrocketing.

There are two types of FedEx Ground routes: pickup and delivery (P&D) routes and linehaul runs. If you are investing in FedEx Ground routes for the first time, we highly recommend P&D routes. Why? P&D routes are easy to learn, less expensive than linehaul, and have a consistent revenue stream each month.

As we continue to face labor shortages, contractors struggle to recruit drivers for their operations. To help combat the challenges of finding drivers, we have partnered with Bright Flag Recruiting. One of the biggest challenges contractors face when buying or operating in a market is determining what they need to pay to be competitive when recruiting and retaining drivers.

Fuel cards are the way your drivers will pay for fuel (if you enroll in a fuel card program). These cards look like a credit card, but there are important differences between a fuel card and a credit card.

Our team has helped many Amazon DSPs find a new owner over their operating rights of the business. Going through the acquisition process within the Amazon network is similar to becoming a FedEx Ground contractor. There are a few different ways to become an Amazon DSP, similar to becoming a FedEx contractor.

Electric vehicles (EVs) are all the rage in today’s consumer market. Many cities and states, particularly on the east and west coasts, are edging ever closer to lowering emissions and adopting a more electric vehicle friendly environment. FedEx Ground has vowed to be fully carbon neutral by 2040. EVs will certainly be a big part of that initiative.

Every day, Route Consultant’s FedEx routes for sale receive a record number of inquiries about listings via our website and hotline. Our team, and other vendors in this space, are inundated with requests and questions throughout the day. SBA lenders are in a similar position, particularly right now. Our goal is to prepare you to get to the front of the SBA lending line.

Did you know that 99% of all of our transactions are asset purchase agreements (APAs)? When purchasing a FedEx Ground business, it’s imperative to be aware of the type of sale you intend to make.

Need a quick refresher on FedEx Route financials in order to make the right purchase? Here’s the top financial terms and definitions you need to understand to review a FedEx Ground route for sale.

Although it feels as if our world is already dominated by e-commerce, the market is not nearly done growing! We predict the e-commerce expansion to rise steadily for the next ten years. The total e-commerce volume will be so significant that we believe there will be enough business for all the current logistics players to sustain themselves and for new players to enter the market and thrive.

There are two distinct types of FedEx businesses: pick-up and delivery (P&D) routes or a linehaul run. 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 you the right contractor for a linehaul run?

The Schedule L announcement comes with two major changes: New quarterly incentives and disincentives based on an all-new safety ranking system, and an update to the accident indemnification amounts for contractors. With these changes, contractors can see impacts on quarterly revenue anywhere from +2% to -3% based on their safety performance. This new system ranks contractors in a new “class” of 1-10, with 10 being the best.

Our team of actual FedEx contractors worked through the math of new FedEx trucks versus used FedEx trucks in our own operations. We always want to make the most efficient choice for our fleets. We have compelling data that shows new trucks are the superior option for routes that are 150 miles per day or less. Why is this the case?

Running a successful company starts with having a solid team. An employee handbook is a critical factor in creating company culture and guidelines for your employees. Whether your employees are part-time, seasonal, or full-time, having some form of agreement in place is essential. An agreement establishes clear expectations and regulations for your team members.

There are additional costs that come with purchasing a FedEx Ground delivery business beyond just the purchase price. When negotiating a deal and calculating your expected costs to be fully operational on your first day, you must consider additional startup costs.

In our industry we refer to the period of time between the beginning of November and the end of December as peak season. Inside of peak season there is a critical three to four weeks—roughly from Thanksgiving to Christmas—of exceptional package volume. Some contractors make one-third of their annual profits in peak season.

Amazon DSP businesses have very different profitability and valuation structures compared to FedEx Ground routes. Learn more about the profit structure of Amazon routes and where you can go to learn more about the last-mile logistics space in general.

With the increasing growth in the e-commerce delivery space, many potential FedEx Ground investors often ask if Amazon is a threat to their success. The answer? No.

As you evaluate potential FedEx Ground routes for sale as an investment, you need to consider the financial implications of each route’s geography. Routes that are more rural or more urban have specific challenges and benefits. Planning for the geographic impact of a route in advance will better position you to maximize revenue.