FedEx Route Questions: (1) Foot Delivery in Large Areas, (2) Max Facility Rule, (3) Amazon Routes

[Fred Jackson]

Hello. I have read through a number of posts and performed a ton of searches, and I still haven't been able to find discussion on the questions below...

I am looking into buying a number of FedEx routes and have performed a ton of research and due diligence. Let me know if you have any thoughts on the following:

(1) What are people's thoughts on the routes that park a truck in highly populated areas such as Manhattan and then have people run the packages on foot? This seems like a great concept... what am I missing here in terms of the down and upsides?

(2) Are there instances of people having a ton of routes at one facility and breaking the maximum facility rule? Is FedEx willing to negotiate with people who run a tight ship and want to have a tons of routes at one facility? Thoughts/possibilities?

(3) What are people's thoughts on Amazon's routes? It looks like Amazon is giving routes away for free, but I haven't found anyone anywhere who's actually done this or has any thoughts on it... Deliver With Amazon

 

[It will be fine]

Hello. I have read through a number of posts and performed a ton of searches, and I still haven't been able to find discussion on the questions below...

I am looking into buying a number of FedEx routes and have performed a ton of research and due diligence. Let me know if you have any thoughts on the following:

(1) What are people's thoughts on the routes that park a truck in highly populated areas such as Manhattan and then have people run the packages on foot? This seems like a great concept... what am I missing here in terms of the down and upsides?

(2) Are there instances of people having a ton of routes at one facility and breaking the maximum facility rule? Is FedEx willing to negotiate with people who run a tight ship and want to have a tons of routes at one facility? Thoughts/possibilities?

(3) What are people's thoughts on Amazon's routes? It looks like Amazon is giving routes away for free, but I haven't found anyone anywhere who's actually done this or has any thoughts on it... Deliver With Amazon

1 - I know of a contractor that has a similar setup. I haven't spoken to him, only one of his drivers. I believe his biggest issues were parking tickets and staffing. He had helpers that would meet the truck downtown and run boxes. They were all pretty low class even for Ground guys. My wife worked downtown and says they look like trash, most of the time in jeans and an untucked uniform shirt.

2 - The only contractors I know of that are over max scale are ones that already were before the transition from IC to ISP. I've seen several sales blocked because of exceeding max scale.

3 - Don't know any Amazon contractors so I could only comment with hearsay. There is a driver leaving our terminal to go work for a family member that got some Amazon contract. I'll see if I can get more info. My gut says to not trust Amazon, but who knows?

 

[dmac1]

If possible, diversifying your services is always better from a business standpoint. Instead of having too many routes at one fedex location, contracting with amazon would give you more protection. I just read that they want to contract with people already running a delivery business, and it looks like you have more freedom. I have no idea on compensation though, and Amazon runs 7 days a week. Getting your drivers trained for fedex should satisfy Amazon's requirements and if Amazon is as flexible as they claim on the website, you could keep your drivers busy on slow fedex days, and have back-up drivers ready to go for fedex when needed. If you can't give your drivers enough work, or try to keep one as a backup, you will end up losing drivers, or losing your back up spare driver. If pay is comparable, Amazon appears more flexible, and they are expanding, and the routes are free. I am unclear whether one would have any sole rights to deliver in any area though. If you can make as much money, with $0 invested, go with Amazon. At least look into it more deeply. Relying on one 'customer' for your services leaves you dependent on them, and vulnerable.

 

[dmac1]

My gut says to not trust Amazon, but who knows?

My gut says go with Amazon. They will be growing for decades to come much faster than fedex, and taking a lot of fedex's current business with them. If they have no restriction on carrying packages for other companies, like fedex does have, you may even be able to expand into a full blown local carrier service. Can't do that with fedex.

 

[It will be fine]

My gut says go with Amazon. They will be growing for decades to come much faster than fedex, and taking a lot of fedex's current business with them. If they have no restriction on carrying packages for other companies, like fedex does have, you may even be able to expand into a full blown local carrier service. Can't do that with fedex.

Starting from scratch you may be right. They just haven't been at it for long so it's more volatile. They haven't been sued multiple times by their drivers yet and we all know they will be. We have no idea how they'll react when that happens. They have less invested in a contractor model so they could abandon it more readily. They could pull a contract and send that volume back to the other carriers while working out the kinks with a replacement contractor.

 

[dmac1]

Starting from scratch you may be right. They just haven't been at it for long so it's more volatile. They haven't been sued multiple times by their drivers yet and we all know they will be. We have no idea how they'll react when that happens. They have less invested in a contractor model so they could abandon it more readily. They could pull a contract and send that volume back to the other carriers while working out the kinks with a replacement contractor.

You really need the contract details to make anything but a guess. Fedex can pull the contract too, and you would lose your investment minus value of vehicles.

 

[bacha29]

Hello. I have read through a number of posts and performed a ton of searches, and I still haven't been able to find discussion on the questions below...

I am looking into buying a number of FedEx routes and have performed a ton of research and due diligence. Let me know if you have any thoughts on the following:

(1) What are people's thoughts on the routes that park a truck in highly populated areas such as Manhattan and then have people run the packages on foot? This seems like a great concept... what am I missing here in terms of the down and upsides?

(2) Are there instances of people having a ton of routes at one facility and breaking the maximum facility rule? Is FedEx willing to negotiate with people who run a tight ship and want to have a tons of routes at one facility? Thoughts/possibilities?

(3) What are people's thoughts on Amazon's routes? It looks like Amazon is giving routes away for free, but I haven't found anyone anywhere who's actually done this or has any thoughts on it... Deliver With Amazon

Clearly you are part of what we refer to as " the investor class" . Whatever class you fall into or whether you go with FXG or Amazon one fact remains. To be profitable you have to find dependable people willing to deliver top of the scale performance for bottom of the scale money Few of those out there anymore The people in your trucks must be perceived as professionals, perform as professionals and be PAYED as professionals. That's the problem . getting enough money out of Fred S or Jeff Bezos to meet that final requirement in order to be successful will be your biggest challenge. If you try to run smelter bait quality equipment and put recovering drunks and druggies in the cab simply because their cheap you just won't make it pal. And trying to go down that road is a headache you don't need.

 

[UpstateNYUPSer(Ret)]

Dumb question time---how would FedEx feel about you hauling stuff for Amazon?

 

[It will be fine]

Dumb question time---how would FedEx feel about you hauling stuff for Amazon?

Your contract would be pulled if you did it at the same time your were hauling fedex. You could use unmarked vans and use them for both, just not at the same time.

 

[Bounty]

Your contract would be pulled if you did it at the same time your were hauling fedex. You could use unmarked vans and use them for both, just not at the same time.

Because you are not really independent......still!!

 

[McFeely]

(1) What are people's thoughts on the routes that park a truck in highly populated areas such as Manhattan and then have people run the packages on foot? This seems like a great concept... what am I missing here in terms of the down and upsides?

I don't have much to add aside from parking tickets and staffing except how much can one put on a cart to schlep around the block? I mean, it's Ground deliveries and not just envelopes and mail that will fit nicely on a 2-wheeler. It's Wayfair crap, auto parts, etc.

 

[Cactus]

Hello. I have read through a number of posts and performed a ton of searches, and I still haven't been able to find discussion on the questions below...

I am looking into buying a number of FedEx routes and have performed a ton of research and due diligence. Let me know if you have any thoughts on the following:

(1) What are people's thoughts on the routes that park a truck in highly populated areas such as Manhattan and then have people run the packages on foot? This seems like a great concept... what am I missing here in terms of the down and upsides?

(2) Are there instances of people having a ton of routes at one facility and breaking the maximum facility rule? Is FedEx willing to negotiate with people who run a tight ship and want to have a tons of routes at one facility? Thoughts/possibilities?

(3) What are people's thoughts on Amazon's routes? It looks like Amazon is giving routes away for free, but I haven't found anyone anywhere who's actually done this or has any thoughts on it... Deliver With Amazon

The answers to 1, 2 and 3 are the same. Don't sign anything, run like hell and head for the hills.

It's a no-win situation with FedEx calling all the shots and a very far cry from being your own boss.

 

[It will be fine]

The answers to 1, 2 and 3 are the same. Don't sign anything, run like hell and head for the hills.

It's a no-win situation with FedEx calling all the shots and a very far cry from being your own boss.

Fedex doesn't call the shots for Amazon. Did you even read the post before making the unhelpful ignorant reply?

 

[bacha29]

Fedex doesn't call the shots for Amazon. Did you even read the post before making the unhelpful ignorant reply?

Cactus is right in one regard. The layman's interpretation of an FXG/Amazon contract is often totally different from the legal definition of one. He needs the help of an attorney ,one who is very knowledgeable when it comes to the daily machinations of both of them especially when it comes to FXG who by it's own admission doesn't consider one single term o r condition in it's unilaterally drafted and implemented contract to be binding upon itself. That's important if he's from the investor class who thinks that all he has to do is to buy up some old junk hire a bunch of grunts who despite history's of socially irresponsible behavior will go out there and perform like UPS veterans for a tiny fraction of what their getting. Then just sit back and collect the money. Then again he's a consenting adult. Let him find it out for himself.

 

[Bounty]

Hello. I have read through a number of posts and performed a ton of searches, and I still haven't been able to find discussion on the questions below...

I am looking into buying a number of FedEx routes and have performed a ton of research and due diligence. Let me know if you have any thoughts on the following:

(1) What are people's thoughts on the routes that park a truck in highly populated areas such as Manhattan and then have people run the packages on foot? This seems like a great concept... what am I missing here in terms of the down and upsides?

(2) Are there instances of people having a ton of routes at one facility and breaking the maximum facility rule? Is FedEx willing to negotiate with people who run a tight ship and want to have a tons of routes at one facility? Thoughts/possibilities?

(3) What are people's thoughts on Amazon's routes? It looks like Amazon is giving routes away for free, but I haven't found anyone anywhere who's actually done this or has any thoughts on it... Deliver With Amazon

One thing you must be aware of on this site, a lot of the contractors answering your questions were lucky enough to get their routes for free or paid very little for them. If you are coming in to by an existing ISP it probably is going to cost you a good amount of $. Look elsewhere to invest!!!

 

[bbsam]

One thing you must be aware of on this site, a lot of the contractors answering your questions were lucky enough to get their routes for free or paid very little for them. If you are coming in to by an existing ISP it probably is going to cost you a good amount of $. Look elsewhere to invest!!!

 

[Cactus]

Fedex doesn't call the shots for Amazon. Did you even read the post before making the unhelpful ignorant reply?

You think Amazon is gonna be much different? Bezos is cut from pretty much the same cloth as Smith is.

Use common sense.

 

[OrioN]

Your contract would be pulled if you did it at the same time your were hauling fedex. You could use unmarked vans and use them for both, just not at the same time.

But then comes the HOS rules, which iwbf contact that goes off to be an amazon driver after his stint with FX G or HD is done... i would probably do the same on sundays, but that means working 7 days during peak... so nope !

 

[GroundGame]

Amazon is going to mimic and copy the FXG model to a T. That said, because of the lower cost of getting in, you can still make a nicer return.

If the two were your only options, I'd go with Amazon, more upside. Besides, FXG routes will ALWAYS be there.