FedEx + Amazon: What This New Deal Means for Contractors and Investors
Big things are moving—literally.
FedEx just signed a major deal with Amazon to deliver their oversized residential packages. We’re talking couches, treadmills, big-screen TVs, and more. As UPS continues to scale back, FedEx is stepping up to take on more of Amazon’s heavy freight, and that means significant changes for the Ground network.
Why This Deal Matters
This partnership is more than just a headline — it’s a signal. FedEx is leaning into growth, and they’re tapping the Ground network to help power it. This expansion is expected to drive more volume, particularly in rural and residential areas where large freight deliveries are on the rise.
More stops. More volume. More potential revenue.
But before you start counting the payout, there’s a critical catch: oversized freight isn’t your typical package run.
For Current Contractors: Opportunity Comes with Operational Demands
If you’re already operating in the FedEx Ground network, this deal could bring a surge in volume to your routes. That’s great news, but only if your business is equipped to handle it.
Large freight means longer delivery times, more demanding labor, and specialized trucks and equipment. You need to think about:
Fleet readiness: Can your vehicles handle heavier, bulkier items?
Staffing levels: Do you have the right team for two-person lifts or stair deliveries?
Contract structure: Is your current agreement built to accommodate the extra effort and risk?
Margins can shrink fast if your business isn’t set up correctly. This could be a great growth opportunity—but only if you prepare now.
For Investors: Model the Real Complexity
Thinking about entering the space? This new freight channel could be a smart entry point if you go in eyes wide open.
The demand is there. The volume is coming. But don’t assume more packages means automatic profit. Oversized freight requires a different approach to operations, staffing, and expense modeling.
Before you invest, ask yourself:
Does your business model account for longer stops and heavier freight?
Do you understand how this changes fleet requirements and delivery timelines?
Have you evaluated contract structures that reflect the true cost of delivery?
Route ownership remains a strong opportunity—but now more than ever, success depends on strategy.
Our Take: Plan Now, Profit Later
This FedEx-Amazon deal marks a major shift in the logistics landscape. Whether you're running routes today or evaluating a new investment, now is the time to assess, adjust, and get ahead of the curve.
At Route Consultant, we work every day with contractors and investors navigating change, and this is a big one. We can help you:
Analyze the impact on your current routes
Rework your operational model for oversized freight
Identify opportunities to scale responsibly
Build an investment strategy that reflects today’s logistics realities
Don’t wait until your margins take a hit. Plan now. Be proactive. And if you’re unsure how to make the numbers work, we’re here to help.
Interested in FedEx Ground operations? Check out routes for sale near you or get started with our FedEx Ground 101 e-course today.
