Can a FedEx Contractor Own Both P&D and Linehaul Routes?
After optimizing your FedEx business, you might think about acquiring additional routes. And, as you probably already know, you have P&D and linehaul routes to choose from. But if you already own a P&D route, can you purchase a linehaul route—or vice versa?
The Difference Between P&D and Linehaul Routes
First, let’s recap the differences between P&D and linehaul routes:
P&D stands for “pick-up and delivery.” P&D drivers pick up packages from homes and businesses, then bring them to a local FedEx station. Likewise, P&D drivers bring packages from local stations and deliver them to homes and businesses. This means they directly interact with senders and recipients.
Since P&D routes handle deliveries on a local level, they’re small routes. The drivers also operate vans and small trucks, so the vehicle fleet is easier (and less expensive) to manage. Due to these factors, P&D routes may be a good option for first-time route owners.
Linehaul routes cover long distances within a state (intra-state) or across multiple states (inter-state). The drivers bring packages between local stations and hubs throughout the country. Each run can span hundreds or thousands of miles, so linehaul runs are large. Linehaul drivers also use 18-wheeler trucks, which require more maintenance and gas.
As you can imagine, linehaul runs are more expensive than P&D routes. But that high price point is reflected in the profits, as one linehaul run can earn about five times more than a P&D route.
Can You Own More Than One Route?
Yes, you can own more than one FedEx route. In fact, acquiring additional routes is a common way to grow a FedEx business. You’re not limited to owning a single route.
Keep in mind that there are restrictions on how much you can scale. This restriction, called a scale cap, is established by FedEx to prevent over-reliance on excessively large contractors. The scale cap also varies by terminal, but it can range between 5 to 20%.
Can You Own Both P&D and Linehaul Routes?
Though P&D routes are recommended for first-time owners, you are welcome to add a linehaul route later on. So, yes—you can own both P&D routes and linehaul runs.
Expand Your FedEx Route Business with KR Capital
If you’re a route owner looking to scale, you’ll be glad to know that it’s possible to own P&D and linehaul routes. With that said, KR Capital can help you find a route based on your specific criteria.
And if you’re thinking about buying your first route? We’re happy to answer your buyer questions and guide you through the process. To get started, call KR Capital at (503) 664-0753 or complete our online form today.