Market Insights

How Big is the FedEx Market?

A 2015 FedEx¹  report estimates that there are upwards of 7,500 independent contractors in the United States. This number is divided between those contractors who own P&D, Linehaul, or both. Of the 7,500 independent contractors, approximately 5,900 own P&D routes, 1,500 own Linehaul runs, and 75 own both. While all of these contractors obviously aren’t currently in the market to sell their businesses, it gives some valuable insight as to the size of the FedEx market as a whole.

As part of this report, FedEx estimates that there are 52,000 drivers, managers, helpers & staff employed by these independent contractors. What’s more, the average annual revenue per FedEx business is estimated at $560,000. The revenues per independent contractor are segmented as follows:

Among these 7,500 independent contractors, we estimate that there less than 10% will be selling their respective businesses at any given time (either privately or publicly). This, in turn, gives us a universe of 750 potential sellers all vying for qualified buyers across the United States.

To this end, it is vitally important that sellers do what they can to differentiate their businesses from the rest. It is equally important that sellers receive sufficient buyer exposure so as to ensure the routes get sold at a fair market price.

KR Capital has been aggregating buyer data over the past several years and at present has over 13,000 active FedEx buyers. This vast (and proprietary) buyer database ensures our clients receive sufficient exposure to get their routes sold in a timely manner and a great price.