Preview: figures awaiting verification
Some numbers on this page haven't been checked against their sources yet.
Package Delivery Routes Business
Run a small delivery company that contracts with Amazon (as a Delivery Service Partner) or FedEx Ground (as an Independent Service Provider): a fleet and people-management business with thin margins, where one customer sets your pay and can end the contract.
Figures last verified October 31, 2026
$10,000 – $1,350,000*Pending verificationSourcesAmazon DSP program — Financials(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Amazon DSP program — FAQ(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Amazon DSP program — Financial notes(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026BizQuest listing — FedEx Ground ISP, 29-vehicle P&D fleet, Spokane WA(opens in a new tab)Tier 3 · Guide or blog · Accessed October 31, 2026BizQuest listing — FedEx Ground ISP, 15-vehicle P&D fleet, Bristol VA/TN(opens in a new tab)Tier 3 · Guide or blog · Accessed October 31, 2026Last verified October 31, 2026Computed from 2 startup budget line items: lean plan low to professional plan high. Some lines are not sourced yet and are excluded.
Startup cost
Coming soon
Time to first revenue
High
Difficulty
Moderate
Physical demand
No
Can run solo
Holiday peak, Nov–Dec
Seasonality
* Startup cost excludes budget lines we haven't sourced yet.
Risk Meter
Eight factors from this guide's own data, each scored 1 (lowest risk) to 5 (highest). Every score shows why.
Overall risk
Elevated
3.8 out of 5
Average of 6 of 8 factors, weighted equally. 1 is the lowest risk and 5 the highest. It measures risk, not how much you'll earn, and it isn't a prediction. How we score risk.
Money at risk
5 / 5At least $1,350,000
Top of the startup budget: $500,000 or more.
Time to earn it back
Not scoredNo data
This guide has no sourced revenue forecast.
Franchise closure rate
Not scoredNo data
There are no franchises in this business to measure.
Loan default rate
4 / 59.6% vs 7.2% for all industriesPending verificationSourceSBA 7(a) FOIA loan-level data, files as of September 30, 2026 (our count by NAICS code)(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Charged off = the SBA wrote off the unpaid balance after the borrower stopped paying. An industry code can include businesses unlike this one.
73 of 760 SBA 7(a) loans to Couriers and Express Delivery Services (NAICS 492110), approved FY2010–2019, were charged off. Our count from the SBA's loan-level data; 58 loans were still open, so the final rate may be slightly higher.
Demand trend
3 / 5About the samePending verificationSourcesU.S. Census Bureau — County Business Patterns 2019, U.S. file (cbp19us)(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026U.S. Census Bureau — County Business Patterns 2023, U.S. file (cbp23us)(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026
Couriers and express delivery services (NAICS 492110) employer establishments +6.0% (10,245 to 10,859) vs +5.1% for all industries, 2019–2023.
Licensing and rules
3 / 5Moderate
Needs state and federal registrations: a California Motor Carrier Permit and a USDOT number (see Licensing).
Customer concentration
5 / 5One customer or platform that can end the relationship
All revenue comes from one contract with the delivery company, which can end it.
Physical demand
3 / 5Moderate
From the guide's at-a-glance rating; see the risks section for details.
Franchise vs. Independent
Same type of business. Two very different paths.
Data coming soon
The franchise comparison isn't published yet. We only show numbers we can source.
Startup Budget
One-time costs to launch, from cited sources. Totals are added up from the lines below.
| Item | Low | Mid | High |
|---|---|---|---|
| Amazon DSP startup costs (Amazon's own estimate, first 5 vans)Pending verificationSourcesAmazon DSP program — Financials(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Amazon DSP program — FAQ(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Amazon DSP program — Financial notes(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Amazon's marketing estimate, "as little as" $10,000. It assumes you use every third-party deal Amazon negotiated (vans, insurance, devices, uniforms) and covers legal entity formation and licensing, accountant and lawyer fees, a laptop and timekeeping software, recruiting (job posts, drug tests, driver training) and travel to owner training. Vans leased through Amazon's program have no upfront cost. None of it is paid to Amazon. | $10,000 | $10,000 | $10,000 |
| Total | $10,000 | $10,000 | $10,000 |
Share of mid estimate
- Amazon DSP startup costs (Amazon's own estimate, first 5 vans)100%
Budget spreadsheet
Every line with its sources, included in the complete kit.
AlternativeAmazon DSP: proof of liquid assets required to apply: $30,000 – $30,000Pending verificationSourcesAmazon DSP program — Financials(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Amazon DSP program — FAQ(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026
Not a cost. Amazon requires documents showing this much in liquid assets to cover startup costs and your personal expenses until Amazon's first payment. Shown separately so it isn't added to the $10,000 estimate. Not included in the total above.
AlternativeCalifornia Motor Carrier Permit, first year (for-hire, 5–10 vehicles): $727 – $727Pending verificationSourcesCalifornia DMV — Motor Carrier Permit Handbook (MC 500 M), fee chart(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026California DMV — Motor Carrier Permits(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026From the DMV handbook's full-year intrastate fee chart ($475 base fees + $252 Carrier Inspection Fee). The handbook PDF was last revised in 2019, so confirm the current fee with the DMV.
California only. The fee depends on your fleet size; this is the 5–10 power-unit, for-hire row. Not included in the total above.
AlternativeUSDOT number (if required): Data coming soon
Required for interstate carriers with vehicles of 10,001 lb or more, and by many states (California included) for intrastate carriers. See Licensing. Not included in the total above.
24-Month Forecast
An example to plan with. Every assumption is yours to change.
Data coming soon
The forecast isn't published yet. We only show numbers we can source.
Pricing
What customers typically pay, from large-sample cost data.
Data coming soon
Pricing data isn't published yet. We only show numbers we can source.
Key Risks and How to Manage Them
One customer controls your business
All of your revenue comes from Amazon or FedEx. They set the rates, the volume and the performance metrics, and both describe payment as based on their contract terms rather than on prices you set.
How to manage it: Read the full contract before you commit, build a cash reserve of several months of payroll, and keep your personal finances separate so a lost contract does not take your savings with it.
The contract can end at the customer's choice
Amazon has ended DSP contracts in batches; CNBC reported in 2020 that more than 1,200 drivers at at least seven DSPs were laid off after Amazon ended relationships. A 2021 Amazon DSP agreement filed with the SEC says Amazon owes no severance if it ends or does not renew the agreement. FedEx ISP agreements also run for set terms.
How to manage it: Assume the contract may not be renewed. Do not sign personal guarantees on vans or leases that outlast the contract term, and keep debt low.
Vehicle accidents and liability
Your drivers spend all day on the road in your vans. Crashes, injuries and property damage are your company's liability, and claims drive up insurance costs for the whole fleet.
How to manage it: Carry the required commercial auto and workers' comp coverage, check driving records before hiring, train drivers on safety, and track each driver's record.
Driver turnover and constant hiring
Delivery work is hard and pay is set within thin margins, so drivers leave often. Amazon says it looks for owners who can hire, motivate and manage teams. Every missing driver is a route you still have to cover.
How to manage it: Budget time and money for recruiting every month, keep backup drivers trained, and expect to cover routes yourself in a pinch.
Labor law and joint-employer disputes
You are the employer: wages, overtime, meal and rest breaks, payroll taxes and workers' comp are your responsibility. In California, AB 5 presumes a worker is an employee unless the ABC test is met, so drivers cannot simply be paid as 1099 contractors. The NLRB has also pursued a case treating Amazon as a joint employer of one California DSP's drivers (31-CA-320596, still open), which shows how unsettled these relationships are.
How to manage it: Use a payroll service from day one, get an employment lawyer to review your pay practices, and follow California's meal and rest break rules exactly.
Thin margins and high fixed costs
Labor is most of your cost; one FedEx ISP for sale reports payroll at about 69% of revenue. Vans, insurance, fuel and repairs come out of what is left.
How to manage it: Build your own profit-and-loss model before applying (Amazon says this is your responsibility) and review costs weekly.
Long days, and you may drive at first
Both Amazon and FedEx expect owners to manage, not drive. But when drivers call out, many owners cover routes themselves early on, and a delivery route means a full day of driving, lifting and carrying packages. Amazon calls it a seasonal business, and the holiday peak is the hardest stretch.
How to manage it: Be honest about your stamina before starting, hire a dispatcher or operations manager early, and keep enough trained backup drivers that you rarely have to drive.
Licensing by State
Requirements vary by state and local jurisdiction.
More states are coming.
A general guide only. Rules change and vary by city and county — confirm with your local government before you start.
California Motor Carrier Permit (MCP)
Pending verificationPending verificationSourcesCalifornia DMV — Motor Carrier Permits(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026California DMV — Motor Carrier Permit Handbook (MC 500 M), fee chart(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Anyone paid to transport property in their vehicle needs an MCP, regardless of vehicle size. You first get a CA number from the California Highway Patrol, then apply to the DMV with proof of liability insurance and workers' comp. Fees depend on fleet size.
Verify with the California DMV — Motor Carrier Permits(opens in a new tab)USDOT number
Pending verificationPending verificationSourceFMCSA — Do I Need a USDOT Number?(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026FMCSA requires a USDOT number for interstate carriers with vehicles of 10,001 lb or more, and lists California among the states that require one for intrastate commercial vehicle registrants. Check your vans' weight ratings and confirm with the CHP and FMCSA.
Verify with the FMCSA — Do I Need a USDOT Number?(opens in a new tab)Drivers are employees (AB 5)
Pending verificationPending verificationSourceCalifornia AB 5 (2019), Chapter 296 — Worker status: employees and independent contractors(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026California law presumes anyone paid for labor or services is an employee unless the hiring business proves the ABC test. Plan to hire drivers as W-2 employees with workers' comp, overtime, and meal and rest breaks.
Verify with the California Legislative Information — AB 5(opens in a new tab)Business entity and city license
Pending verificationPending verificationSourcesFedEx Ground BuildAGroundBiz — Contracting Standards(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Amazon DSP program — FAQ(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Amazon's startup estimate includes forming a legal entity. FedEx Ground contracts only with for-profit corporations, not LLCs. You will also need a business license from your city or county.
The Playbook
A step-by-step guide from setup to growth.
Phase 1
Setup
- Decide between Amazon DSP and buying a FedEx Ground route business
- Build your own cost and cash-flow model
- Gather proof of funds and check your credit report
- Form the right legal entity (a corporation for FedEx)
- Line up insurance, payroll and permits
Phase 2
Application and approval
Included in the complete kit
Phase 3
Fleet
Included in the complete kit
Phase 4
Hiring drivers
Included in the complete kit
Phase 5
Daily operations
Included in the complete kit
Phase 6
Safety and compliance
Included in the complete kit
Phase 7
Peak season
Included in the complete kit
Phase 8
Growth or exit
Included in the complete kit
Suppliers and Tools
Vendors independent operators use.
No supplier pays to be listed. If we ever earn a referral fee from a link, it will say “Affiliate link” right next to it.
Where to apply or find routes
The two companies' own pages for prospective contractors.
Delivery vans
Cargo vans for FedEx routes or for DSPs not using Amazon's lease program.
Payroll services
You will run payroll for a team of drivers from the start.
The Kit Is Coming
Everything on this page is free. The downloadable kit (playbook, spreadsheets, templates) is in the works.
Frequently Asked Questions
Is this a franchise?
No. Neither Amazon's DSP program nor FedEx Ground's contractor program is a franchise, and FedEx says so directly. You own a delivery company that contracts with them. There is no franchise disclosure document, which also means you don't get the legal disclosures a franchise must give you. The Open Franchise is not a franchise either.
Do I have to drive the routes myself?
Neither company requires it: Amazon looks for hands-on managers, and FedEx says owners need not be licensed to drive. But many owners do drive routes early on, when drivers quit or call out.
How much money do I need?
Amazon estimates startup costs as low as $10,000 if you use its negotiated deals, and requires proof of $30,000 in liquid assets. FedEx routes are usually bought from an existing contractor; two businesses we found for sale were asking $1.15 million and $1.35 million. Both paths need cash for payroll before payments arrive.
Are Amazon's profit figures guaranteed?
No. Amazon's $100,000–$400,000 annual profit range is its own marketing, based on figures some DSPs volunteered, and Amazon says it does not guarantee results. Build your own numbers.
Can Amazon or FedEx end my contract?
Yes. Contracts run for set terms and may not be renewed, and Amazon has ended contracts with groups of DSPs. Plan as if the contract could end, and avoid long debts you can't pay without it.
Figures last verified October 31, 2026. Every number links to its source. See all sources for this page.