Can I Buy FedEx Routes? A Look at the History and Opportunity Behind These Operations
Yes, You Can Buy FedEx Ground Routes. Here’s How It All Started
If you’re asking, “Can I actually buy FedEx Ground routes?” the answer is a resounding yes. FedEx Ground routes are privately owned and operated by independent contractors. This unique business model allows entrepreneurs like you to purchase and run a logistics operation under the FedEx brand.
At Route Consultant, we help individuals buy, sell, and scale FedEx Ground operations every day. But to understand the opportunity, it helps to understand the history.
A Brief History of FedEx Ground Operations
The roots of FedEx Ground trace back to 1985 with the founding of RPS (Roadway Package System), a company that challenged UPS by introducing barcode scanning, centralized tracking, and a contractor-driven delivery model. In 2000, FedEx acquired RPS and rebranded it as FedEx Ground.
From day one, this division has used independent contractors rather than direct employees to handle last-mile delivery and linehaul (tractor-trailer) services. Over the years, this model evolved into two distinct types of contracted operations:
Pickup & Delivery (P&D) Routes: Local routes run out of FedEx terminals that deliver packages to homes and businesses, operated under the ISP model
Linehaul Routes: Long-distance transportation of trailers between hubs, terminals, or customer locations, operated under the TSP model
Why FedEx Ground Chose the Contractor Model
FedEx Ground’s contractor model has allowed the company to expand quickly while controlling costs and maintaining service flexibility. Independent contractors, own the routes, employ their own drivers, and manage day-to-day operations.
This model created a lucrative opportunity for entrepreneurs and investors. Unlike starting a business from scratch, buying FedEx Ground routes means stepping into a well-established system with:
Brand recognition
Steady package volume
Established terminals and infrastructure
Scalable growth potential
What Changed with the ISP Transition?
In 2019, FedEx Ground completed a major overhaul of its Pickup & Delivery (P&D) contractor model by transitioning to what’s known as the Independent Service Provider (ISP) model.
Under this updated model, P&D contractors are required to operate multiple routes within a defined territory, rather than just a single route. The goal was to improve operational efficiency, ensure broader coverage, and promote long-term sustainability for contractors. It also standardized contracts across the network, which made P&D operations more appealing to investors and easier to manage at scale.
But it’s important to note: Linehaul operations were not part of the ISP transition.
Linehaul contractors operate under a separate designation known as Transportation Service Providers (TSPs). These businesses continue to manage over-the-road trucking operations, moving FedEx trailers between hubs, terminals, and customer locations. Their structure and contracts follow different guidelines than P&D contractors.
So, while the ISP transition changed the game for Pickup & Delivery, Linehaul (TSP) contractors remain governed by different expectations and opportunities.
So... Can You Really Buy FedEx Ground Routes?
Yes. Thousands of contractors across the U.S. have purchased FedEx Ground routes and operate them as independent businesses. Routes are bought and sold every day through private sales or with the help of brokerages like Route Consultant.
At Route Consultant, we specialize in helping buyers navigate the entire process—from evaluating a route’s value to understanding operational requirements and long-term profitability. We also offer education and support, like our FedEx Ground 101 course, to help you make informed decisions.
Final Thoughts: FedEx Ground Routes Are a Proven Business Model
Buying FedEx Ground routes isn’t just possible, it’s a proven way to own a logistics business with a built-in client, consistent demand, and growth opportunity. The history behind this model shows just how resilient and profitable these operations can be.
Ready to Learn More?
Take the next step in your journey by watching our enrolling in FedEx Ground 101 e-course, or contact us to speak with someone on our team.
