You might not have considered delivery routes lucrative, but they are a gem among
franchises. The logistics industry worldwide is booming and is predicted to grow even more
in the future. By 2027, experts predict it will have grown to $6.55 trillion.
The nicest part about running a delivery route business is that it may be a relatively passive
way to make money. To put it plainly, a delivery route business acquires a franchise to own,
manage, and deliver a long one of an established company’s routes. It’s a good idea to
familiarise oneself with the fundamentals of route acquisition before diving headfirst into the
delivery route industry.
Use this comprehensive strategy to acquire delivery routes in the year 2022 successfully.
Delivery routes: What are they, and what are their different types?
A delivery service acquires a franchise from an established brand to take over the operation
of a certain delivery route and begin making deliveries there. For example, one of your team
members might be the one to deliver packages to such locations. Finally, the route owner will
determine your weekly commission based on the total number of parcels you delivered.
Companies that specialize in delivering packages to customers can be found in a wide range
of categories. Package delivery services and even the delivery of premade meals are
available for purchase.
There are two main categories of routes, protected and unprotected. A protected route can be
set up to prevent unauthorized individuals from accessing a specific location. Whereas a
protected stop ensures only certain spots and not the entire region, protected stops are much
However, a route that is not tied to any particular supplier has additional options. This paves
the way for you to provide unbeatable rates and a broader selection of goods.
They bring with them an established clientele, but there is more competition because of the
lack of geographic exclusivity. There is less oversight of an independent route’s operations,
and they can usually be purchased for less money, leading to a higher net.
The mechanics of a delivery route
For the most part, while you’re a route operator, you’re the sole proprietor of your own
delivery business. This means that you will be in charge of all sales activity along the route.
Within this designated area, you have the opportunity to expand your business through the
addition of new customers and the cultivation of current ones.
Companies that rely on product deliveries, like food delivery services, can source their
inventory from wholesalers and distribute it to local businesses. A service-based route
business, such as pet grooming, can also give you more freedom over your work hours.
The drivers can finish their journeys faster with the help of hacks. As a result, you’ll be able
to increase your company’s revenue by accepting more routes. For this reason, you can use
tools like Upper’s route optimization to plot the quickest path for your drivers.
Buying delivery routes
If you are looking for routes for sale, you can go to the BizRoutes website. If done
successfully, purchasing delivery routes can generate significant financial returns. However,
if you don’t do your homework, you could waste a lot of money on a path that doesn’t pay
off. Read on to find out how to buy delivery routes.
Searching for delivery routes
It all starts with a well-thought-out plan. You can refine your job search by state, country, or
kind. Additionally, you may create a profile and opt to be notified through email or text
message if new routes are made available in your area or you can hire a business broker-bizroutes
Explore all the companies
Don’t rush into buying a route just because you like it. Check the numbers to be sure it’s a
smart financial move. Think about the average deliveries, number of stops made for pickups,
total miles, and other stats from the previous year on this route.
It’s not enough to just think about the commute; you also need to evaluate whether or not
you’d be comfortable with the company’s work environment and regulations.
Arranging funds to buy a delivery route
An individual can earn a good living on a delivery route. Nonetheless, the price is quite high.
When looking at routes for sale on websites like BizRoutes, you’ll see that the costs can
range from $200,000 to $6.5 million. Most likely, the cost of a route will increase as its
confirmed cash flow increases.
Due to the high price of purchasing FedEx delivery routes, you may need to seek financing
elsewhere. For instance, you may make a down payment on a route and then have the bank
cover the rest of the cost. And you need to be ready if you want to get the money.
Obtain a license
Despite finding a route you’re interested in purchasing and having the capital to do so, you
still need the company’s blessing before moving forward. For instance, if you want to buy a
FedEx route, you must be sure you can handle the duties involved. FedEx mandates that all
trucks operating on the ground service have VEDR technology installed for the safety of
their drivers and cargo.
The company looks to fulfill responsibilities like:
Training and hiring qualified drivers.
Salaries, perks, payroll taxes, and workers’ compensation insurance are all costs borne by the
Vehicle and equipment supply and maintenance must adhere to FedEx rules, including safety
Employment law requires that delivery companies obtain a Federal Employer Identification
Number before legally hiring drivers. FedEx will want proof of your registered firm, such as
a copy of your Articles of Incorporation (with the state seal) and a document that includes
your Federal Employer Identification Number. To ensure the confidentiality of FedEx’s
operations and transportation routes, you will be required to sign a nondisclosure agreement
Purchasing existing delivery routes is an excellent opportunity to become your own boss.
However, it is essential to do a thorough study when acquiring routes. Think about the
average distance traveled and the number of packages to be delivered while planning a
distribution route. Make sure you run your routes as rapidly as possible to maximize the
profit potential of your own company.