Becoming a FedEx Ground contractor involves several steps, including meeting the necessary qualifications, applying for a contract, and completing the required training. There are two key ways in which you can become a contractor:
- FedEx Ground awards you a contract to service areas
- You purchase the contract to service areas from an existing contractor.
In this post, we will go over the first option in detail.
Here are the general steps to becoming a FedEx Ground contractor:
- Contact FedEx Ground: If you own a business and want to take the next step to contract with FedEx Ground, contacting FedEx Ground is an essential first step. You can follow the below steps to get in touch with FedEx Ground and to start getting FedEx Ground Contractor opportunities in your inbox:
- Meet the qualifications: To become a FedEx Ground contractor, you must meet certain qualifications, including having a minimum of one year of business ownership or management experience, having a net worth of at least $100,000, and being able to pass a background check. FedEx offers 2 main types of opportunities for contractors that you can choose from based on the availability of the opportunities and your experience.
- Pickup and Delivery (P&D) — Using vans or small trucks, picking up packages from shippers and transporting to the local FedEx Ground station – and, from the destination station, delivering to business and residential recipients
- Linehaul — Transporting FedEx Ground owned trailers over the road from station to hub, hub to hub, and hub to station — and, in some cases, between customer locations and stations or hubs ("spotted trailers" or "spots")
- Research the opportunity: Visit the FedEx Ground website to learn more about the contractor opportunity, including the requirements, costs, and benefits. You can also find information about open routes and territories.
- Apply for a contract: Once you have determined that you meet the qualifications and are interested in becoming a FedEx Ground contractor, you can apply for a contract. In addition, you will need to provide information about your business, your financial situation, and your experience. Having a fully built-out FedEx Ground Contractor Business Plan is a must.
- Attend an interview with the BDS and station management teams: If your application is accepted, you will be invited to attend the interview session, where you will learn more about the contractor opportunity, the requirements, and the training process. As a FedEx Ground contractor, you will need to be able to showcase your plans on
- Safety
- Efficient Operations
- Customer service
- Interview vendors: FedEx will assign you a FedEx ID once your background check is complete. You can use your FedEx ID to log in and view necessary resources, including approved FedEx Ground Vendors, here: https://www.mygroundbiz.com/. FedEx Ground has vetted and approved vendors for all the key areas where you need help. It's a good practice to ask vendors if they can prove that they have been approved before evaluating them. You will need vendors for:
- Vehicles
- Safety & Telematics
- Scanners
- Business Management: Routing, Timekeeping, Vehicle Maintenance
- Uniforms
- Insurance
- Vehicle Financing
- Payroll
- Purchase equipment: You must purchase or lease your equipment, including vehicles, uniforms, software subscription scanners, and other tools.
- Build your team: Depending on the size of your operations, you must determine an optimal team configuration.
- Business contact (team leads)
- Drivers
- Back office (for payroll & recruiting)
- Start your business: Once you have completed the setup and purchased your equipment, you will be ready to start your FedEx Ground contractor business. Here is a webinar that you can view on what to expect on your first day of standing up your business.
There are several brokers who help with buying and selling of routes. If you decide to take the help of a broker to purchase an existing business, we will do a follow-up post on some common pitfalls and how to protect your transaction when working with a broker.
It's important to note that becoming a FedEx Ground contractor is a significant financial and time commitment. Therefore, before pursuing this opportunity, carefully research the requirements, costs, and benefits, and consider consulting with a financial advisor or other professional.