P&D (pick-up and delivery) Routes
P&D Routes cover local residential and business deliveries. Historically, these deliveries have been fulfilled by either “Ground” or “Home Delivery” contractors. By May 2020, FedEx1 will require operators to cover both types of routes within a given area.
FedEx Home Delivery Routes
These routes serve residential areas and generally operate Tuesday through Saturday. A FedEx Home Delivery Route will typically deliver online orders and personal deliveries.
FedEx Ground Routes
These routes serve commercial accounts and generally operate Monday through Friday. A FedEx Ground Route might service local businesses, hospitals, schools, etc. Unlike Home Delivery, Ground operators must also account for customer pick-ups during specific pick-up windows.
Benefits of Owning a FedEx P&D Route
Compared to Linehaul routes, P&D routes tend to be smaller and less expensive to purchase. The P&D trucks themselves are also smaller and require a smaller capital expenditure. The routes will generally cover fewer miles will have fewer driver requirements.
Linehaul Routes can run either intra- or inter-state, hauling trailers between FedEx hubs. Linehaul runs are serviced by semi-trucks, which may be more costly to maintain and carry a higher safety risk. These routes require drivers to hold a valid CDL license.
Linehaul routes consist of three types of runs:
These runs operate continually along the same route (for example, they might go from Asheville to St. Louis and back). The route and destination does not vary.
These routes will originate in the same place but the destination will vary as FedEx needs change.
Spot runs are a bit of a hybrid between P&D and linehaul runs. They utilize semi-trucks to service regional pickup and deliveries for large companies (such as Wal-Mart).
Benefits of Owning a FedEx Linehaul Route
Despite the larger price tag, Linehaul runs often offer larger revenues and cash flows over P&D routes. Because Linehaul contracts pay on a per-mile basis, a single linehaul run can generate up to five times more revenue than a P&D route.
Types of FedEx Routes at a Glance
Home Delivery Routes
- Operate from Tuesday through Saturday
- Primarily deliver packages to residential addresses
- Tend to operate with smaller vehicles than those of ground routes
- Often see a higher growth rate than ground due to the increase in residential online shopping
- Operate from Monday through Friday
- Primarily deliver to commercial addresses
- Operate larger vehicles than those of home delivery routes
- Often see more stability throughout the year due to the fact that its volume is not directly tied to consumer spending behavior
- Come in several forms, including: dedicated, unassigned and spot runs
- Operate with semi-trucks which come with a higher associated cost, but longer longevity
- Runs can operate regionally or nationally and may range from several hundred to several thousand miles
- Require drivers to have a valid CDL license to operate