Rural or Urban Routes: Which Is More Profitable?

When you’re planning to buy a FedEx route for sale, it can be tempting to dive right into the process. But before you start browsing available routes, it’s wise to determine if you’d like to serve a rural or urban area. Not only will this narrow down your choices, but it will ensure that your future route suits your professional ambitions as a business owner.

In making this decision, you may wonder if rural or urban routes are more profitable. Buying a FedEx route, after all, is a big investment — so it’s natural to have your eyes set on making money.

Let’s look into the financial opportunities of both rural and urban FedEx routes, plus how the two compare.

Making a Profit on a Rural FedEx Route

Due to the small populations in rural areas, it’s common to assume that the country lacks financial potential. Besides, when there’s more cows than people, how can FedEx make a profit?

While there are fewer stops than an urban operation, a rural route has certain features that can improve your bottom line. Some expenses, like gas and vehicle insurance, are lower in rural regions. Drivers are also less likely to get traffic tickets or parking violations, which means less unnecessary payments.

On that note, rural route drivers are more likely to stay on the job — and like it. That’s because driving in the country (and some suburban areas) is generally less stressful than navigating cities, making their daily duties more pleasant overall. Additionally, with the lower cost of living in rural areas, payroll is typically lower than urban routes.

Vehicles are also less likely to get banged up during the day, thanks to the minimal traffic and wider roads. Over time, this can decrease your expenses and allow your business to make a bigger profit.

Making a Profit on an Urban FedEx Route

Compared to a rural operation, an urban route has significantly more stops. The route is also more efficient, as the driver can make many deliveries within a smaller area. What’s more, your vehicles will need less fuel because of the small area covered, even if the cost of fuel per gallon is more expensive.

A city also offers a larger, more diverse pool of talent. That means you’ll be more likely to find the right type of individuals for the job.

Urban operations offer unique opportunities for growth, too. With so many companies, institutions, and residents packed in a given service area, you’ll have more chances to expand and scale your FedEx business in a city.

Buy Rural or Urban FedEx Routes with KR Capital

As you can see, both types of routes have financial potential. But which one is more profitable? Well, it depends! Both rural and urban routes can be profitable depending on how you operate as a business owner. It also depends on your ideal work environment — and what aspects you’re willing to invest in.

If you’re unsure which route is best for you, contact KR Capital. We can recommend several locations that accommodate your desires, dreams, and ambitions as a business owner. From there, we can help you find a FedEx route for sale and coordinate the buying process.

Contact us at (503) 664-0753 or complete our buyer info request form.