Experience with Fedex or Amazon DSPs?

April 29, 2024

by a searcher from The University of Chicago - Booth School of Business in Nashville, TN, USA

Does anyone have experience with owning Fedex and/or Amazon DSPs and willing to share their experience?

They obviously have some downside in terms of SBA approval, customer concentration and limited organic growth potential but they seem to have fairly strong cash flow potential in a good industry. I'd be very interested in your perspectives on if they are worth exploring or what to look out for

Thanks!

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Reply by a searcher
from Massachusetts Institute of Technology in New York, NY, USA

Thanks for the tag ^redacted‌ ^redacted‌, I haven't owned a FedEx route, but I looked into purchasing one. Here are some things to consider: 1. managing the CF is really important, as it fluctuates significantly and can result in a temporary loss during certain months if you finance the purchase; 2. understand the route and how it will impact your fleet and maintenance requirements; 3. make sure the fleet is relatively new; 4. you have to account for replacement of a vehicle that may be temporarily out of commission; 5. be sure to have a good manager in place; and 6. it's important that the driver's have been longer term as there can be a lot of turnover which is disruptive.‌

Reply by an intermediary
from Spalding University in Prospect, KY 40059, USA

^redacted‌ Thank you for the tag. ^redacted‌ I've purchased and sold within FXG (FedEx Ground) 7 times. This is a variety of transactions. I'm happy to guide you on the search. If you're strongly considering the venture then I do partner with a broker on a sell side engagement that can help greatly.

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