Anybody own FedEx routes? Good business to get into?

[jeffkelly78]

I've been researching into FedEx routes for some time now. Looks like you can make about 40k per route... which isn't much on it's own, but if you own several routes, you can make quite a bit of money.

Was looking into some of these for instance:

FedEx Routes for Sale | Capital Business Solutions

and these:

Routes for Sale - Route Consultant

But they're a bit out of my price range... but just an example, on Route Consultant, I saw a FedEx route business selling for $299k and making 90k a year... in a little over 3 years it's paid off, and then you're making some decent bank...

Believe FedEx sells some directly on their site as well...

Just wondered if anyone had experience in this, and if so, how has it turned out for you as a business idea?

Thanks!

 

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[BigRomeDawg]

I've never heard of this. What are you actually buying when you buy a route?

 

[BizyDad]

I've never heard of this. What are you actually buying when you buy a route?

Trucks. Employees. And a geographic area where your customers are located.

Click on the link and you can see what's for sale.

I've been researching into FedEx routes for some time now. Looks like you can make about 40k per route... which isn't much on it's own, but if you own several routes, you can make quite a bit of money.

Was looking into some of these for instance:

FedEx Routes for Sale | Capital Business Solutions

and these:

Routes for Sale - Route Consultant

But they're a bit out of my price range... but just an example, on Route Consultant, I saw a FedEx route business selling for $299k and making 90k a year... in a little over 3 years it's paid off, and then you're making some decent bank...

Believe FedEx sells some directly on their site as well...

Just wondered if anyone had experience in this, and if so, how has it turned out for you as a business idea?

Thanks!

3 years to recoup sounds ok in theory. But I've been seeing a lot more of these popping up and available.

What did the owners know that we don't?

Maybe their trailing revenue was increased by a boom any commerce while everybody stayed home.

Maybe we are facing higher gas prices on a sustainable time frame and they want to get out early.

Maybe the cost of truck parts has increased.

And at the end of the day, you are still beholden to the FedEx ecosystem. While Amazon is expanding into the space.

I have no expertise in the space, but my gut tells me there are too many cents violations to be worthwhile. I think if you're buying a business, there are probably better opportunities out there.

Side note...

I do know based on a client's experience that Amazon has been hoovering up anyone with driving experience. My client spent months trying to fill a position. Your labor pool is probably a lot more competitive than it used to be.

 

[jeffkelly78]

Trucks. Employees. And a geographic area where your customers are located.

Click on the link and you can see what's for sale.



3 years to recoup sounds ok in theory. But I've been seeing a lot more of these popping up and available.

What did the owners know that we don't?

Maybe their trailing revenue was increased by a boom any commerce while everybody stayed home.

Maybe we are facing higher gas prices on a sustainable time frame and they want to get out early.

Maybe the cost of truck parts has increased.

And at the end of the day, you are still beholden to the FedEx ecosystem. While Amazon is expanding into the space.

I have no expertise in the space, but my gut tells me there are too many cents violations to be worthwhile. I think if you're buying a business, there are probably better opportunities out there.

Side note...

I do know based on a client's experience that Amazon has been hoovering up anyone with driving experience. My client spent months trying to fill a position. Your labor pool is probably a lot more competitive than it used to be.

I feel like these have always been available (FedEx routes). Seems to be as if some percentage of them is always changing hands.

The drop in the ecommerce boom is a valid concern... maybe I should wait a bit and keep an eye out till things stabilize a bit more...

As to Amazon, do they sell routes? Or do you mean just to drive / deliver for Amazon?

 

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