FedEx Routes the right way to go?

[Grimreaper11368]

Hi, I'm new to the community. I posted something about half an hour ago and it was deleted. But I wasn't sure what I did wrong. I looked through the policies. I didn't seem to run afoul of anything. I was just genuinely looking for some real unbiased information on these FedEx routes and how they would hold up to another of my business interests: car washes. I figured this would be the best place to get advice from people who either own or work closely with these FedEx routes. Thanks.

 

[Grimreaper11368]

I will be in a position to invest in either soon, and I'd like to know if these FedEx routes are still the way to go. I just was surprised at the negative feedback widely expressed with the changes that are occurring with independent contractors and their FedEx routes.

 

[zeev]

1 year contract, biggest contractor Patton at Route Consultant had his taken away but he has lots for sale.

 

[Grimreaper11368]

I think I heard of this case. Did he own something like two hundred routes? He was arguing against FedEx, if I believe correctly.

 

[Grimreaper11368]

I have a friend who owns two routes and has been suggesting that I buy a few once I get my money. I've done a lot of research. And it seemed like a great idea. But then I found this site, and it seems like so many of you--real route owners and employees--have so many reservations with these routes.

 

[Grimreaper11368]

I would love some advice to know if perhaps my friend is trying to save face and not seem like he made the wrong decision or if it really was a great investment. The only other business that I found that would be a good investment was car washes. So we live in NY where there are a ton of apartment buildings. I will most likely be able to afford various routes.

 

[Grimreaper11368]

I plan on shadowing my friend for 3-6 months before I go in and try to buy my own it I do go the fedex routes. He says that with three to six months shadowing him, I should be prepared to handle 3 or 4 or maybe even 5 routes. Alternatively, I would only be able to buy two really good car washes and hold a note for a little extra to make a bit more money out of the car washes.

 

[Grimreaper11368]

That is, if I was to buy 4 good FedEx routes it would cost me just about equal to the amount that I'm expecting to ultimately receive. If I buy two really good car washes I would be making more money but I would also owe money on top of what I ultimately expect to get. Now many things can happen, amounts can change.

 

[Grimreaper11368]

But please give me your advice assuming this case works out in this particular way. Thanks so so much and I appreciate you taking the time to read this. God bless. I would just like honest, unbiased options. Thanks again!

 

[zeev]

Kevin Rutherford on Let’s Truck has great advice, my opinion stick to car washes, Trucking is a low margin business, Ground in turmoil right now.

 

[Grimreaper11368]

Man, thank you so much for offering advice. It is truly appreciated. You have no idea how hard it's been to get some knowledgeable info on this topic. It seems to be so niche, which is why I was so excited when I found this forum. At last, I can speak to real people in the know.

 

[Grimreaper11368]

I just looked up his stuff. But is there any one podcast in specific you could point me to? There seem to be a ton, and I'd probably spend the whole night looking. Hahaha. I will if you don't know for sure anyway. Also, are there any specific reasons you could point out as to why you would veer away from FedEx? Again, thanks, sir.

 

[zeev]

He has a call in show.

 

[Grimreaper11368]

Ok, I'll see if I can find some transcripts. Thanks, and God bless.

 

[It will be fine]

I plan on shadowing my friend for 3-6 months before I go in and try to buy my own it I do go the fedex routes. He says that with three to six months shadowing him, I should be prepared to handle 3 or 4 or maybe even 5 routes. Alternatively, I would only be able to buy two really good car washes and hold a note for a little extra to make a bit more money out of the car washes.

What do you mean by route? Do you mean contracts? They have scale requirements and the smallest they might let someone buy is going to be at least 6 trucks on road daily. I’d recommend against trying to buy multiple contracts at the same time.

Contracts vary wildly. Some are profitable, many are not right now. FedEx has made no adjustments to compensation for fuel and inflation and declining volume. It’s going to be hard going for most for a while, you’d be buying at the bottom.

In general this is a terrible forum for advice. It’s mostly soon to be former Express drivers that hate FedEx and especially hate Ground. They have no understanding of the business side of Ground. There comments can be boiled down to “corporations bad.”

 

[Grimreaper11368]

What do you mean by route? Do you mean contracts? They have scale requirements and the smallest they might let someone buy is going to be at least 6 trucks on road daily. I’d recommend against trying to buy multiple contracts at the same time.

Contracts vary wildly. Some are profitable, many are not right now. FedEx has made no adjustments to compensation for fuel and inflation and declining volume. It’s going to be hard going for most for a while, you’d be buying at the bottom.

In general this is a terrible forum for advice. It’s mostly soon to be former Express drivers that hate FedEx and especially hate Ground. They have no understanding of the business side of Ground. There comments can be boiled down to “corporations bad.”

Ok, thanks for shedding light. Good morning by the way. So the routes I'm speaking of are established routes that have a sort of "proven track record," in that these routes have financials for years going back. And, of course, I would have to do my due diligence; but these are routes that are claiming to be netting a certain amount for each route. So, for instance, one of the routes can be selling for $1.6 million with an advertised net income of $10k a week. I mean routes like this that are claiming to be making a certain amount of money per year. Of course, it's my duty to verify those numbers, but that's what it supposedly makes. I would find 3 or 4 routes like this. And I did mean multiple contracts at a time. Also, would you not recommend buying multiple contracts at a time even if they were vetted first and I had the preparation of being exposed to my friend's two routes for six months even before I was to buy my own? Thanks for the response. And sorry for all the question. Blessings.

 

[BoxDriver]

I don’t think you really researched this site enough. There’s only 2 Ground contractors on here right now that I know of, and very few others that have come and gone over the years I’ve been here. I doubt any would recommend buying anything right now. 99.9% of the people on here are Express employees that HATE anything to do with Ground.

As a now former driver for Ground contractors for 15 years with all the changes I’ve seen, there is now way I’d ever consider getting into a contract with FedEx right now.

 

[Grimreaper11368]

I don’t think you really researched this site enough. There’s only 2 Ground contractors on here right now that I know of, and very few others that have come and gone over the years I’ve been here. I doubt any would recommend buying anything right now. 99.9% of the people on here are Express employees that HATE anything to do with Ground.

As a now former driver for Ground contractors for 15 years with all the changes I’ve seen, there is now way I’d ever consider getting into a contract with FedEx right now.

Oh, wow. That sure is a resolute answer. I see. I definitely should consider other ventures then. Well, I didn't know any other place where I could easily find FedEx independent contractors. So this may not be the ideal place, just as you say. Do you know any other legitimate places where I could find FedEx independent contractors? It seems like car washes seem like a more stable business venture at the moment. Of course, no business is going to be perfect. But we have to try to do our best to research any way we can before throwing our money away, especially since money is so so difficult to come by in large amounts these days. I'm just trying to do my best. It's not easy. I was interested in car washes other than FedEx because I liked the idea of having a set place to go, one of two car washes that I could go and learn how to run. FedEx is a different beast because it's so many trucks and stations and packages. I mean to say, FedEx has much more moving parts then something like one or two car washes. Of course, I would also only buy established car washes. It seems much more safe than starting one in my own due to my lack of experience. Thank for answering. You guys/gals have been quick to try and offer them the wealth of insight you have and that's so cool that you can find a place like this with people who know more about something then you and yet are still willing to share. Truly grateful to everyone who has shared. Thanks again!

Would all of these problems be fixed and make FedEx routes a great investment if they had been offering a bit more to the contractors? What I mean to say is, if they decided to give more to contractors tomorrow, is the condition so bad that it would still take time for this investment to be worth it again? It's kind of hard to explain it what I mean. Like, if I chose not to invest in FedEx today and went with the car washes then five weeks from now they come to an agreement with the contractors, would it be like damn I missed on the opportunity and not it's suddenly fixed. Maybe I should have invested anyway? Or has more damage been done than what could simply be fixed from one day to the other if FedEx chose to stop being greedy? Hope I'm making some sense.

 

[BoxDriver]

BTW, bacha will be along any minute now with a TLDR post about FedEx contracts non binding, jing weeds, and replacement hips made from recycled golf clubs. Bottom line is his advice is run far away from FedEx. I’d advise putting him on block now like I did years ago.

 

[It will be fine]

Ok, thanks for shedding light. Good morning by the way. So the routes I'm speaking of are established routes that have a sort of "proven track record," in that these routes have financials for years going back. And, of course, I would have to do my due diligence; but these are routes that are claiming to be netting a certain amount for each route. So, for instance, one of the routes can be selling for $1.6 million with an advertised net income of $10k a week. I mean routes like this that are claiming to be making a certain amount of money per year. Of course, it's my duty to verify those numbers, but that's what it supposedly makes. I would find 3 or 4 routes like this. And I did mean multiple contracts at a time. Also, would you not recommend buying multiple contracts at a time even if they were vetted first and I had the preparation of being exposed to my friend's two routes for six months even before I was to buy my own? Thanks for the response. And sorry for all the question. Blessings.

It would be a terrible idea to buy multiple contracts all at once, probably not very practical anyway with how long the process takes with FedEx. Even shadowing your friend, you’ll learn a lot with your first one and have a much better idea what to look for in a second. You don’t want to compound any costly mistakes by making them over 3-4 contracts instead of 1. After you get one going you might even be able to pick up distressed areas for free and use your capital for only equipment instead of buying another contract.

To another of your questions further down, I think FedEx is currently weeding out contractors that are less adaptable to improve their base for the transition to One FedEx. They’ll have to increase compensation some to maintain service when they make that switch. It won’t be a ton of money but they’ll need a more stable contractor base going forward. A lot of people got in or expanded during Covid and don’t know what they’re doing. Many overpaid for contracts and are going bankrupt because of the debt they’re carrying.