Well Established FEDEX Routes Fully Overlapped
This fast-growing FEDEX delivery business comes with 12 routes and 5 Trucks. Owner currently rents trucks to support routes. Buyer will need to purchase new trucks. The new contract that starts in October is for 2 years and it’s shows a significant increase in FEDEX settlements averaging $35,000 per week so the expected revenue for 2020 is 2.1M+. The increase in revenue is primarily due to 100% overlap mandate for all FEDEX Contractors to have 100% overlap of home delivery and ground routes. The owners have 20+ years of experience in FEDEX routes and that has helped to negotiate a very good new contract starting October 2020. The buyer needs to have about $350K cash to make this deal work and in addition to that they must be an owner operator preferably with transportation and logistics background.
Digital eCommerce growth accelerates the growth of this business as the retailers want to deliver more products to customers faster. These routes are exclusive to the business so there is no competition within FEDEX. However, the business success depends on the financial strength of FEDEX Corp. Well-trained staff with one full-time managers make it easier for the new owner to make this transition a smoother experience.
The business has 12 routes with zip codes that are primarily residential homes. The delivery is from warehouse to resident homes and businesses within these zip codes. All trucks are parked in a terminal with free rent, so the major expenses are only driver salary, fuel, workers compensation, repairs and maintenance.