Ground contractors move packages on the long-haul routes between FedEx ground locations. You have to provide your own tractor (or rig), but FedEx supplies the trailer. As a ground contractor, you’ re responsible for your own business-related expenses .
How much do FedEx contract owners make?
Average FedEx Independent Contractor yearly pay in the United States is approximately $57,231 , which is 76% below the national average.
How much is a FedEx contract?
The average cost for a FedEx route is approximately $100,000 . And at the same time, you can expect to hire between 7 to 10 employees. It’s all about some little things like trucks, uniforms, decals, and software.
What is a FedEx contracted service provider?
Contracted service providers are paid an agreed upon amount , based on the volume of stops and packages delivered and other terms provided for in the agreement with FedEx Ground. Payments for services rendered are made on a weekly basis.
Does FedEx use contract drivers?
FedEx Ground uses 15,000 drivers like DelliBovi, 38, which it pays as independent contractors. Under this system, FedEx Ground drivers can own multiple routes, employing other drivers to deliver packages. ... “These are independent contractors who can run and grow their own businesses,” said spokesman Maury Lane.
Is it worth buying a FedEx route?
FedEx routes can be highly profitable , but they may not offer the full potential profitability of starting a business from scratch. If you invent something new or capitalize on a new market, you could conceivably make more money that way.
How much money do I need to buy a FedEx route?
An average priced FedEx Ground route for sale will require a down payment of around $150,000-$200,000 , plus working capital. Higher cost routes, like our premier linehaul listings, may require down payments in excess of $1,000,000.
How much do FedEx contractors make per box?
FedEx’s rates to contractors vary widely by location and are negotiated individually. But on a rough basis, a contractor can expect about $1.50 per SmartPost parcel , compared with $2.70 for a conventional one.
Is buying a route a good investment?
If you have some money to invest and time to work, then a bread route can be a fantastic investment. You’ll have the opportunity to earn a steady income while building the value of your accounts. This combination of circumstances can lead to a significant profit margin in time that you can pocket.
How much do FedEx contractors make per mile?
It is hard to achieve average above $1.25-1.30 a mile (including the FSC in this number LOL)...
How do I get a contract with FedEx?
- At least one year of commercial driving experience within the last three years;
- Have no record of positive alcohol or drug test;
- Have a current commercial driver’s license; and.
- Be able to cross the border into Canada.
Is FedEx a service provider?
Being an Independent Service Provider aka FedEx ISP, is a dream of many small business owners, but what is FedEx ISP and what exactly is the conversion to ISP from CSP (Contracted Service Provider)?
What is a contracted service provider?
Contracted Service Provider means a third party that enters into a contract with an agency to provide goods or services required by an agency for its operations .
Why does FedEx use contractors?
FedEx Ground says its independent contractor model motivates drivers to work harder and smarter because the more the company succeeds, the more money they can make . The more packages delivered, the more money the driver can make.
Do FedEx drivers have to buy their own trucks?
Yes , the drivers have to buy their own trucks, but the trucks have to be exactly as required by FedEx. ... FedEx keeps tight control on exactly what these FedEx drivers do day in and day out, down to how they interact with customers and how they look.
Is there a lawsuit against FedEx?
Fedex Ground Package System Inc. will pay $2.47 million to settle a class action alleging it made unlawful deductions from drivers’ wages by misclassifying them as independent contractors, under a settlement approved by a federal court in New Jersey.
