What is a Route?

 A FedEx/Amazon contracted route involves an independent contractor operating a delivery route under a contract with FedEx/Amazon, owning their own vehicles and hiring their own drivers, while representing FedEx and adhering to its standards. Owning a FedEx/Amazon route can be beneficial due to the potential for high revenue, flexible business operations, and access to resources, as well as the opportunity for equity appreciation and business growth. 

What is a FedEx/Amazon Contracted Route? 

• Independent Contractor: You operate as an independent business, not an employee of FedEx/Amazon. 
• Contracted Service Area: You have exclusive rights to deliver packages within a specific territory, as outlined in your contract. 
• Own Equipment and Staff: You are responsible for purchasing or leasing vehicles, hiring and training drivers, and managing day-to-day operations. 
• Representing FedEx/Amazon: While independent, you operate under the FedEx/Amazon brand and must adhere to their standards and guidelines. 
• Types of Routes: 
  • Pickup & Delivery (P&D): These routes involve delivering packages to homes and businesses, as well as picking up packages. 
  • Linehaul: These routes involve transporting packages between FedEx/Amazon hubs, often overnight, and can generate higher revenue than P&D routes. 

Why Should you Own a Route? 

• High Revenue Potential: FedEx/Amazon Ground routes can generate significant revenue, especially linehaul routes. 
• Established Business Model: Operating under the FedEx/Amazon brand provides a reliable business framework with an existing customer base and operational support. 
• Flexible Business Operations: You have control over your business operations, including scheduling, staffing, and route management. 
• Equity Appreciation: As a contractor, you own assets like vehicles and have contractual rights to specific territories, which can increase in value over time. 
• Opportunity for Growth: You can scale your business by adding routes or expanding your operations.
• Tax Benefits: You can strategically account for asset depreciation and accelerated depreciation to reduce your business's tax liability.