FedEx Ground 101

Capital Route Sales, Inc. FedEx contracting presentation.

Mission statement:Our mission is to help FedEx contractors create a strategic exit strategy, that will sustain the new owner, business, and drivers into the future. With our 7 years experience at FedEx Ground, our expertise is unmatched to other intermediaries selling FedEx routes.

Independent Service Provider (ISP) Transition.

Milestones

March 11, 1985On March 11, 1985, a startup company called Roadway Package System (RPS) put a label with 33 precisely spaced black lines on the outside of a package. By doing so, it changed the direction of the small-package industry.

1996RPS was a division of Roadway Services, which became Caliber System Inc. in 1996. Independent contractor model born.

1998-2000RPS was officially rebranded FedEx Ground in January 2000, FedEx Home Delivery launched shortly after this.

Today FedEx Ground has improved transit times for more than half of its city-to-city shipping lanes, making it faster to more locations than UPS.

3 divisions FedEx Ground operates M-F

deliveries to business, & homes performs pick ups.

FedEx Home Delivery operates T-Sat deliveries to homes, & businesses, no pick ups, performs schedule evening deliveries.

FedEx Line Haul, hours vary. Dedicated- same run each week, guaranteed mileage. Undedicated-runs vary on destination and mileage varies.

How it works:

Step 1

Inquire-Sign NDA. Provide proof of funds. -Info packet sent to buyer. -Q&A session held with seller and buyer.

Step 2

Offer -Deposit placed in escrow.-30 day or less due diligence. -Purchase agreement executed.

Step 3

FedEx Approval -CR-030 and RFI turned into FedEx. -Interview process with FedEx, 30 day vetting process. -Closing, contract signing at local hub.

Revenue models

FedEx Ground $1.67 per stop, $0.25 per

package.

$1.54 per pick up stop, sliding scale of $0.26 to $0.10

Van availability $57.00 per day on each PSA.

FedEx Home Delivery

$1.54 per stop, $0.26 per package.

$1.54 per pick up stop, sliding scale from $0.26 to $0.10

Premium Services $2.25 per stop in addition to the rates above.

Van availability $47.00

Line haul Local run rates vary.

Dedicated base on mileage, each run is slightly different. Check settlement.

Undedicated rates vary, check settlement.

Monthly & Quarterly revenues.

ECCS, EPP

Quarterly bonus, EPPMonthly bonus, ECCS Eligible PSAs Quarterly Enhanced Primary Plus Payment 2 $1,450.00 3 $3,150.00 4 $5,100.00 5 $7,300.00 6 $8,750.00 7 $10,200.00 8 $11,650.00 9 $13,100.00 10 $14,550.00 Payment of the ECCS bonus will be based on Contractor’s performance in each of the PSA’s under contract for a full calendar month. $585.00 potential monthly bonus. No ineligible events FULL ECCS, 1 verified complaint: HALF of ECCS for that PSA. Preventable accident: NO ECCS. Out of service orders issued by law enforcement: NO ECCS, 1 or more driver DQ in addendum 13 to the contract when driving a CMV: NO ECCS, 1 or more verified complaint(s) due to signature or scanning integrity: NO ECCS.