FedEx Routes – More Buyers or Sellers?
It is quite possible that there has never been a better time to be in the market for FedEx routes. The ISP transition has created more opportunities for route buyers than ever before. And given the overall bullish sentiment surrounding FedEx’s 2018 earnings, the future looks bright for the brand and operators.
Many experts are calling for this impressive growth to continue well into 2019, with earnings expected to grow by over 15% and revenue growth anticipated at over 5%.
Of course, no matter what the market dictates, we all know that the internet and digital channels continue to drive B2B and B2C shipping to unprecedented levels. Millions of packages are being moved every day by multiple shippers. FedEx alone could surpass 5 billion packages shipped in 2018. Package volume is on the increase across the board.
When it comes to FedEd routes, buyers should be excited that many long-held routes are hitting the marketplace. Sellers, meanwhile, are grateful for the volume of potential buyers that are currently out there. And when you look at the FedEx’s impressive business ethics, environmental policy, social ethics, and public policy engagement, it is no wonder many American-made entrepreneurs are looking to buy FedEx routes.
Another positive note is the continuing construction of a new 800,000-square-foot FedEx Ground “megahub” in Allen Township, Pennsylvania. This facility alone is expected to stimulate up to 3,000 jobs in the region. It is another strong indicator of the positive growth that surrounds the FedEx brand. The hub is expected to open at the end of the third quarter this year.
As with any business, the price of FedEx routes will be determined partially by supply and demand. Geography is another major factor. For example, if there are 20 routes for sale in North Carolina opposed to 5 routes for sale in Texas, the NC routes might sell for a lower price. As with anything, something is only worth what someone is willing to pay for it at a given time. Historically, FedEx routes not only retain their value but see consistent year-over-year growth.