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12 Replies Latest reply: May 16, 2012 5:25 PM by ucfpengbuck RSS

FedEx Ground Home delivery contractor purchase

JXB Novice
Currently Being Moderated

Am interested in buying a FedEx route. Saw an informative thread started by Mark111 in '09.

Does anyone know how to contact him for follow up?

Also, does anyone have recent updated or inputs for route(s) in Dallas, Tx?

 

Thanks

 

JXB

  • Re: FedEx Ground Home delivery contractor purchase
    goblue214 Novice
    Currently Being Moderated

    I can provide info on HD Routes. I own routes in Florida.

    • Re: FedEx Ground Home delivery contractor purchase
      JXB Novice
      Currently Being Moderated

      Thanks for the response. I have a lot (everything) to learn.

      o What are metric FedEx uses to measure performance?

      o What are the chances of losing the contract?

      o Numbers I've seen look too good to be true. $200K investment buys a gross of $300K and net of $180K. Can this be right?

      o what happens if a truck or driver go down...does FedEx have equip and drivers to provide?

      o Can this be run as an "absentee" owner successfully?

      o How can I ID owners in Dallas to talk to?

      o What are main issues to contend with?

      o Is there someone in FedEx I can contact? How do I find him/her?

       

      I appreciate your help.

       

      JXB

      • Re: FedEx Ground Home delivery contractor purchase
        robiv Novice
        Currently Being Moderated

        JXB,

        I can help with a few of your items. I'm looking at purchasing HD routes and have found the following:

        • It varies each depot, but most problems (customer complaints, driver rudeness, missed pickups, etc) you are informed by FedEx and there's a process where you're OK if you fix them asap. Some problems (e.g. violating compliance standards by paying your drivers with 1099 instead of w2) can result in immediate revokation of contractor status with no return.  Talk to your depot manager and get a copy of the contract.  Also, this may differ for new arrangement in some states.
        • Your numbers could be legit, but examine the Settlement Statements carefully and be sure you're looking at Settlement Net (after FedEx deductions), and realize that you still need to subtract payroll, fuel, truck expenses, etc from that to get the true Net.
        • If a truck or driver goes down, FedEx does not provide anything.  It is your responsibility to have backup, especially if you are a non-driver.  Your depot manager may work with you short-term and let you use one of his employees, but all that does is cost him money to help you, so I wouldn't count on it.
        • I have found no one at FedEx to talk to - I am going through a broker, which helped some, but I finally got a meeting with the depot manager and met with current owners and drivers - STRONGLY recommend those steps.

        Hope that helps some.

        Robiv

    • Re: FedEx Ground Home delivery contractor purchase
      JXB Novice
      Currently Being Moderated

      And lastly, what question(s) have I not asked?

       

      JXB

    • Re: FedEx Ground Home delivery contractor purchase
      robiv Novice
      Currently Being Moderated

      Lallouz,

      I am trying to pin down pricing for possible HD purchase in Alabama. Do you have any info on financial rules of thumb for valuation purposes?  I'm trying to pin down price as multiple of CF, price as % of Net Settlement, CF as % of Gross or Net Settlement, etc.

      Thanks,

      Robiv

  • Re: FedEx Ground Home delivery contractor purchase
    LALLOUZ Newbie
    Currently Being Moderated

    Hi jxb

    i am in contact with fedex to become a independent contractor for all states ground with tractor trailer,i have to buy the tractor  $125.000.00 and on

    my need is to find some one that know the business and help me out on the decision of yes or no

     

       thanks

     

          Haim

  • Re: FedEx Ground Home delivery contractor purchase
    ucfpengbuck Novice
    Currently Being Moderated

    Some 411 for you guys.     The criteria to drive was changed a few yrs ago.   It's something like you must have one year exp and within the last 6 months of driving a like vehicle.  If any of you guys head over to the terminals ask about this.

     

     

    I had a rough time getting a driver for December because of their rules.

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