Anyone have experience with FedEx routes?

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October 05, 2025

by a searcher from Biola University in North Tustin, CA, USA

Heard a good pod with someone consolidating FedEx routes and sounded fairly compelling, check shows up in account weekly, stable demand with little to no demand gen required, and scalable/repeatable via geo expansion. Focos on operational efficiency (full trucks, non-overlapping routes, high delivery throughput), keep trucks on the road, and keep butts in seats. I heard it can be a “grind” and seems confirmed by number of routes for sale after just 1-2 years.
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Reply by a searcher
from University of Southern California in 1 World Way, Los Angeles, CA 90045, USA
Been in trucking for a good portion of my career. Have people made lots of money in these types of dedicated businesses, sure. Is there horrendous concentration risk, yes. Can they be very difficult to manage and have high capex when trucks break down, yes. Like anything, do your research and have a parachute plan ready if fedex changes their routing matrix or decides to move volume.
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Reply by a searcher
from Northwestern University in Chicago, IL, USA
FedEx routes are a trap I almost fell into at the beginning of my search. Don't do it. They sell for low multiples, because FedEx's contracts allow them to take control of your route and sell it at any point, because of potentially minor quality issues. They are especially sensitive to new owners and can take your route and resell it basically whenever they want as long as 2 very minor things go wrong. A ton of people bought routes during covid and then tried to sell when the volumes dipped, but a lot of SBA lenders won't lend to them because of how easy it is for FedEx to cancel your entire revenue source.
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