FedEx Contractor Question

[Smoking Bandit]

Hey folks I' am a new member here and just wanted to get some questions answered by some knowledgeable folks. I've read a few posts about people talking about FedEx contractors and you fine people gave them really good advices and what not, so I hope you can help me.

I was wondering what the 3-types of FedEx contractors mean? Explaining it to me like I' am a 5 year old (new to this game)

FedEx Custom Critical Owner/Operator

FedEx Ground Independent Contractor

FedEx Home Delivery Independent Contractor

My father has been looking for other opportunities and a friend told him about FedEx contracting, didn't give to much detail about it though. He's saved what he could through the years (around 35k) and is looking to buy one of those Mercedes-Benz Sprinter Cargo Vans (Also does he have to buy the cargo van brand new or can he buy a used 2011-2012 one) But first wanted to get a little information as to which route he should take out of those 3 possible contracting jobs offered by FedEx, so what you guys think? The hard work isn't the problem, he is physically fit and strong, so long drives and sleepless nights are not a problem. He is just like all of us looking for the most lucrative offering. I'd appreciate you fine folks helping my father in answering his questions, I thank you all for your time dedicated to helping our family through this tough financial time.

 

[UpstateNYUPSer(Ret)]

$35K won't get you in the front door.

 

[STFXG]

Does your dad know he will be buying a business, not just a truck? He will have to purchase the route. Similar to purchasing a franchise. With a new business it's very difficult to get financing. Does he have enough assets to leverage? The costs vary depending on where you are in the country.

I don't know much about custom critical other than you don't have an actual route. You can get sent anywhere in the country and be gone for days at a time.

HD runs tues-sat and doesn't make as much as ground. But has more growth potential. You can usually buy them for less than ground routes.

Ground runs mon-fri. Makes more and costs more. Also does more work.

Any particular questions you're looking to get answered?

 

[barnyard]

Custom Critical is an irregular route. Contractors hire on (generally as a team) and pick up stuff and drive, close to non-stop until it is delivered. It used to be a way to make pretty good money, but like everything else, FE has wrecked it.

 

[Route 66]

.....It used to be a way to make pretty good money, but like everything else, FE has wrecked it.

that's one thing this company really knows how to do, and does it very well - wreck a good thing. I learned to become very nervous when presented with an attractive option, because the better it is, the sooner they muck it up or jerk it away entirely.

 

[Smoking Bandit]

Thanks for the replies guys, Sorry to bother you but I got a few more questions, hopefully you guys can help me with it.

Which one out of the 3 would you say would best be the one for my father? He doesn't want to travel very far, we live in California so regional would be good, no out of state stuff or going from lets say northern California to southern, 100-300 miles is ok. Which of the 3 will work with a Sprinter or cargo van? I hear you need to get your CDL/hazmat for them except for the Home Delivery one, is this true? My father wants to drive alone also, do all his own work. Which would you say out of the 3 contractor jobs is more bang for the buck? He doesn't want to spend 35k to get a Sprinter/Cargo Van, if it's not going to earn a good income. I just want to make sure my dad chooses the right one, he's counting on me to get all the right information since this is his life savings he is putting on the line, hoping to make a decent income until he can retire in about 8-10 years. He also wants to expand if things go good, like buy more vehicles and hire people to drive for him, which of the 3 jobs will this fall under? Thank you all.

 

[mjjlohn]

Your dad isn't very smart with his life savings if he's counting on you to ask a forum on the internet for advice.

 

[STFXG]

CA is a 3 route minimum state. He would not be working alone he would have to purchase at least 3 routes. Tell him to look elsewhere. You're wasting your time on here.

 

[Route 66]

Bandit,

Please do your Dad a huge favor and tell him to just put this whole venture out of his mind and move on to another plan. I don't think his 35k is going to do a whole lotta talking with FedEx.

Not trying to burst any guy's bubble, but judging from what you've provided, I just don't see anything happening for him as a Ground contractor (particularly in your state of CA based upon what STFXG stated)

Good luck to him.

 

[UpstateNYUPSer(Ret)]

May I suggest your Dad look in to working as a regional carrier for Amazon?

 

[barnyard]

Sounds like he is looking to 'buy a job.' There are much better jobs than FE Ground or Custom Critical if he is looking to buy a job.

In California, there has to be regional delivery services. Tell him to look there. Pay will be better than FE, plus he will be an employee, not a contractor.

 

[Smoking Bandit]

All good points, thanks for the replies guys. He just wants to start something new and drive for a few years and hopefully expand where he can own a couple of trucks/vans and have people drive for him. He's been a driver all his life, taxi/limo, that's all he knows, but business has been slow so he quit that industry. Just looking for some info on which route to go in this situation.

Upstatenyupser- does amazon let you buy your own Sprinter/Cargo Van and deliver for them being your own boss? Or is it basically you being given a truck and just drive like a regular job?

 

[UpstateNYUPSer(Ret)]

Upstatenyupser- does amazon let you buy your own Sprinter/Cargo Van and deliver for them being your own boss? Or is it basically you being given a truck and just drive like a regular job?

I have no idea but it would be something for you and your Dad to look in to.