FedEx Routes

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February 07, 2024

by an investor from Purdue University in San Francisco, CA, USA

Any one know why there are so many FedEx routes for sale? Is FedEx changing their contract terms? Thanks!

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Reply by a searcher
from The University of Chicago in Atlanta, GA, USA
I had the same question - it looks like there will be some financial restructuring at FedEx with major cost cuts for delivery services.

https://www.reuters.com/markets/us/fedex-outline-plans-fiscal###-###-#### cost-reductions###-###-#### /#:~:text=LOS%20ANGELES%2C%20April%205%20(Reuters,N)%20and%20Amazon%20(AMZN
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Reply by a searcher
from Rutgers in Philadelphia, PA, USA
FedEx routes were exploding in value in###-###-#### and early 2022, but since the interest rate hikes and general industry downturn many of the businesses are struggling. There was a lot of M&A activity in the###-###-#### period and I would imagine lots of recent buyers are struggling with their debt service. From what I've heard from those in the space, they're facing a FedEx corporate who is focused on the bottom line and maintaining a good relationship with contractors is no longer the top priority.
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