FedEx Update

FedEx Update: 8 Positive Signs It’s Time to Buy Routes

FedEx Update

If you have been on the fence about investing in FedEx routes, now might be the perfect time to take the plunge. Gaining the backing of one of the most recognizable brands in the world almost feels like cheating since it is, after all, your own independent business. 

Let’s take a look at a few of the reasons why you should call a broker today and get started.

  • FedEx, as an internationally-recognized brand, continues to see strong growth, as pricing and volume remain on an upward swing.
  • As the tailwinds of e-commerce continue to gust, the digital shipping universe continues to expand. Both sales and earnings for the company are expected to rise deep into 2019 and beyond.
  • International rhetoric about a global trade war might be heating up, but being a largely regional business, FedEx routes are somewhat insulated to potential fallout.
  • If you use FedEx’s current stock price as a gauge, it is now trading at approximately 14 times forward earnings, another testament to brand strength.
  • The use of drones and autonomous delivery sources still appear to be many years away from coming to fruition. And even if they pass safety and legal hurdles, establishing a hub network is no easy task.
  • The FedEx network still allows for faster delivery than UPS, boding well as more businesses turn to an online-only model. Expedited shipping continues to be a value proposition that more and more consumers don’t just expect, but demand.
  • The 2018 holiday season is expected to be more profitable than ever, making it a great time to buy FedEx routes. FexEx had fewer delays than UPS last year during peak retail season. With more companies offering guaranteed delivery dates, FedEx consistency is a big selling point.
  • Current rate averages show that FedEx ground rates are slightly cheaper than the competition.

All signs point to continued growth for FedEx, meaning that FedEx routes can be a lucrative proposition for owners who are willing to work hard and abide by the bylaws. If you are in the market for a FedEx route, please search our inventory on this website and contact us today.

 

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