Average FedEx Independent Contractor yearly pay in the United States is approximately $100,000, which is 11% below the national average.
How does FedEx Ground pay contractors?
The short answer: Contractors are paid weekly via direct deposit, and compensation is calculated based on the activity from the prior week. ... All FedEx contractors are paid as 1099 independent contractors, according to the terms stipulated in their FedEx contract.Jul 20, 2020
How much does FedEx pay per route?
When you add all this up, the average annual profit for a FedEx route is around $30,000-$40,000 per route. Keep in mind that this multiplies with every additional route that you own.Dec 11, 2019
How much do FedEx contractors get paid for pickups?
But on a rough basis, a contractor can expect about $1.50 per SmartPost parcel, compared with $2.70 for a conventional one. The FedEx Ground model has worked because it offers contractors a powerful brand, growth and steady income as the company pays contractors weekly for delivered packages.Oct 29, 2019
How do I get an independent contract with FedEx?
The qualifications for work as an independent contractor for FedEx Ground include: At least one year of commercial driving experience within the last three years; Have no record of positive alcohol or drug test; Have a current commercial driver's license; and.
How do I get a FedEx Ground contract?
FedEx ground contract requirements include that you own your delivery route (5 or more or 500 stop minimum); that you own or lease your own approved delivery vehicles; that you will establish and maintain customer relationships; that you hire your own staff and ensure that you pay fair market wages, provide employee ...Apr 11, 2018
Does FedEx use subcontractors?
FedEx Ground uses 15,000 drivers like DelliBovi, 38, which it pays as independent contractors. Under this system, FedEx Ground drivers can own multiple routes, employing other drivers to deliver packages. ... “These are independent contractors who can run and grow their own businesses,” said spokesman Maury Lane.Jul 12, 2007
Is it worth buying a FedEx route?
FedEx routes can be highly profitable, but they may not offer the full potential profitability of starting a business from scratch. If you invent something new or capitalize on a new market, you could conceivably make more money that way.Jan 13, 2021
Are FedEx P&D routes profitable?
“A strong pickup and delivery (P&D) operation has a profit margin between 10-20% (on rare occasions near 25%). Linehaul operations have a wide range of profit margins between 15-35%, depending on the composition of the linehaul runs.”Dec 16, 2020