Guides
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.
FedEx Ground contractor earnings per route depend on route class and settlement language, not one advertised number. A contractor signs a service agreement with FedEx Ground Package System, Inc., and gets a weekly settlement based on stops, miles, and fuel surcharges.
FedEx Ground calls route owners independent contractors. The IRS applies a common law control test when it reviews that status.
No single published index or dated study sets the per-stop, per-mile, or margin figures on this page. FedEx Ground does not publish contractor settlement rates. The ranges come from U.S. route-for-sale listings and contractor message boards posted over recent years, so treat them as typical asking ranges, not audited results.
Route Options Compared
Dense Suburban P&D
- Settlement Basis
- $2.20–$3.30/stop + $0.35–$0.55/mi
- DOT Burden
- Medium
- Profit Margin
- 8%–14%
Rural P&D
- Settlement Basis
- $2.80–$3.80/stop + $0.45–$0.65/mi
- DOT Burden
- Low to medium
- Profit Margin
- 6%–12%
Linehaul Run
- Settlement Basis
- $1.15–$1.65/loaded mile
- DOT Burden
- High
- Profit Margin
- 10%–16%
Multi-Route P&D
- Settlement Basis
- $2.20–$3.30/stop + per-mile
- DOT Burden
- Medium to high
- Profit Margin
- 10%–18%
The table compares four route types on settlement, DOT burden, margin, and buyer fit.
Route option comparison
Weekly settlement basis
- Dense suburban P&D
- $2.20 to $3.30 per stop plus $0.35 to $0.55 per mile
- Rural P&D
- $2.80 to $3.80 per stop plus $0.45 to $0.65 per mile, fewer stops
- Linehaul run
- $1.15 to $1.65 per loaded mile all-in, no per-stop pay
- Multi-route P&D territory
- $2.20 to $3.30 per stop plus per-mile across 3 to 5 routes
DOT burden
- Dense suburban P&D
- Medium; box truck under 26,001 lb GVWR, short-haul log relief possible
- Rural P&D
- Low to medium; longer daily miles require DOT number and medical card
- Linehaul run
- High; Class 8 truck, CDL driver, ELD and IFTA filings
- Multi-route P&D territory
- Medium to high; one DOT file per vehicle, more driver qualifying
Profit margin (typical)
- Dense suburban P&D
- 8% to 14% after driver pay and fixed costs
- Rural P&D
- 6% to 12% because deadhead miles consume fuel
- Linehaul run
- 10% to 16% when fuel surcharge passes through
- Multi-route P&D territory
- 10% to 18% because management overhead spreads across routes
Right answer when
- Dense suburban P&D
- First route for an owner with one driver and cash for a used box truck
- Rural P&D
- Owner who lives in the territory and runs light package counts
- Linehaul run
- Owner with a CDL driver and fuel surcharge exposure
- Multi-route P&D territory
- Owner who has managed employees and wants several 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.
For example, a route grossing $2,600 a week with a $1,050 driver wage, $475 fuel, a $300 truck payment, $250 insurance, and $200 in repairs leaves the owner about $325 before income tax.
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.
For example, a rural route grossing $1,850 a week with a $700 driver wage, $425 fuel, a $225 truck payment, $175 insurance, and $150 in repairs leaves the owner about $175 before income tax.
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.
For example, 1,600 loaded miles at $1.45 pays $2,320. After a $1,000 CDL driver wage, $550 fuel, a $275 truck payment, and $220 insurance, the owner keeps about $275 before income tax.
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.
For example, four routes grossing $2,000 each bring in $8,000 a week. Drivers cost $3,400, fuel $1,300, truck payments $1,000, insurance $800, and repairs and payroll $600, leaving the owner about $900.
The DOT burden column also depends on vehicle class, so review FMCSA rules for local courier fleets before your first dispatch.
Route price and payback
Route prices in U.S. listings commonly run from about $80,000 for a single small P&D route to more than $500,000 for a multi-route territory. Price tracks annual settlement volume, stop density, truck condition, and how many drivers stay with the route. Longer remaining contract terms and clean service scores push the asking price up.
Payback cited in resale listings and contractor boards typically runs three to five years when the owner drives. A non-driving owner often waits longer because driver wages take the first slice of settlement. The sale price may not include the truck, the scanner, or the working capital needed for the first fuel and payroll cycle.
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. 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.
