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What FedEx Ground contractor earnings per route actually look like
FedEx Ground contractor earnings per route come from per-stop and per-mile pay. Compare P&D, linehaul, multi-route, and rural options on margin and DOT burden.
What to take away
- FedEx Ground route earnings come from per-stop and per-mile settlement rates, not a fixed salary.
- A dense suburban P&D route and a linehaul run can produce similar weekly gross, but their labor and fuel costs sit in different places.
- Profit margin after driver pay, insurance, and repairs often lands from 8% to 15% for a non-driving owner.
- Buying a FedEx route is worth it only when stop density and terminal relationship fit your labor and cash plan.
- Every FedEx Ground contractor route shares one limit: the settlement table can be reset at renewal without your pricing control.
What this comparison covers
FedEx Ground contractor earnings per route depend on route class and settlement language, not on a single advertised number. A contractor signs a service agreement with FedEx Ground Package System, Inc., and receives a settlement each week based on stops, miles, and fuel surcharges. FedEx Ground labels route owners as independent contractors, but the IRS applies a common law control test when it reviews that status.
This comparison looks at four route options that appear in U.S. route-for-sale listings: a dense suburban P&D route, a rural P&D route, a linehaul run, and a multi-route P&D territory. Each option is set against four criteria: weekly settlement basis, DOT compliance burden, profit margin, and the situation where that option is the right answer.
The criteria that matter
Use these four tests when you compare FedEx Ground contractor routes. Ranges below are illustrative, drawn from route-for-sale listings and contractor message boards, not offers.
| Route option | Weekly settlement basis | DOT burden | Profit margin (illustrative) |
|---|---|---|---|
| Dense suburban P&D | $2.20 to $3.30 per stop plus $0.35 to $0.55 per mile | Medium; box truck under 26,001 lb GVWR, short-haul log relief possible | 8% to 14% after driver pay and fixed costs |
| Rural P&D | $2.80 to $3.80 per stop plus $0.45 to $0.65 per mile, fewer stops | Low to medium; longer daily miles require DOT number and medical card | 6% to 12% because deadhead miles consume fuel |
| Linehaul run | $1.15 to $1.65 per loaded mile all-in, no per-stop pay | High; Class 8 truck, CDL driver, ELD and IFTA filings | 10% to 16% when fuel surcharge passes through |
| Multi-route P&D territory | $2.20 to $3.30 per stop plus per-mile across 3 to 5 routes | Medium to high; one DOT file per vehicle, more driver qualifying | 10% to 18% because management overhead spreads across routes |
No column here is a ranking. A rural route that pays more per stop can be worse on margin because stops are far apart. Before trusting a margin range, remember the owner files a Schedule C and issues 1099-NEC forms, so Schedule C and 1099-NEC rules apply.
Option by option
Dense suburban P&D routes make money on stop count. A single route may settle for $2.20 to $3.30 per stop plus $0.35 to $0.55 per mile across 700 to 1,000 stops a week. Gross before expenses often lands from $1,800 to $3,300, but driver pay, fuel, and a truck payment eat most of it.
Rural P&D routes pay more per stop and per mile because package density is lower. Deadhead distance is the trade. A 120-mile rural route with 300 stops may gross less than a 45-mile suburban route with 800 stops.
Linehaul runs have no stops. The contractor earns per loaded mile, often $1.15 to $1.65 all-in, and the driver is a CDL holder. Fuel surcharge pass-through drives margin swings.
A multi-route P&D territory is a management play. The owner hires drivers for three to five routes and earns overhead margin on each. Purchase price is higher, and one weak driver can pull down service scores.
The DOT burden column also depends on vehicle class, so review FMCSA rules for local courier fleets before your first dispatch.
Where each one wins
A dense suburban P&D route is the right answer for a first-time owner with one reliable driver and a cash buffer for a used box truck. If you hire drivers, FLSA overtime rules apply to them even when FedEx Ground settles with you as a contractor.
A rural P&D route is the right answer when the owner already lives in the territory and can use a personal vehicle for smaller package counts.
A linehaul run is the right answer for an owner who can hire a CDL driver and watch fuel surcharge changes closely. A multi-route P&D territory is the right answer for an operator who has managed employees before and wants margin from several routes instead of one.
DOT numbers and intrastate authority vary by state, so check local courier authority, a state guide before you sign a route contract.
What none of them solve
FedEx Ground controls the settlement table. That is the shared limitation across all four route options. A fuel surcharge formula can change, per-stop pay can reset at renewal, and the contractor cannot quote a higher rate to shippers inside the FedEx Ground network.
Every FedEx Ground settlement table is a unilateral contract term. FedEx Ground can change the fuel surcharge formula or stop pay at renewal, and the route owner cannot negotiate a different rate for that terminal.
For owners who want a different revenue path, FedEx reseller programs are a separate structure.
Common questions
What does a FedEx Ground contractor earn per route? A single P&D route may gross $1,800 to $3,300 a week before driver pay, fuel, and truck costs. Owner profit after expenses often lands between 8% and 15%, depending on route density.
Is buying a FedEx route worth it? It can be worth it if the route's stop density, settlement table, and terminal relationship fit your labor plan. It is not worth it if you need a fixed payout or control over per-stop rates.
How is FedEx contractor settlement per mile calculated? Per-mile pay applies mainly to linehaul runs, often $1.15 to $1.65 per loaded mile all-in. P&D routes receive per-mile pay as a smaller add-on to per-stop pay.
What is a realistic FedEx Ground route profit margin? For a non-driving owner, margin after driver pay, insurance, repairs, and fuel commonly falls from 8% to 15%. Multi-route territories can reach the upper end if overhead stays flat.
