Q&A: Does FedEx Franchise in the UK?
Becky Martin, writer
FedEx is a well-reputed courier company with depots across the world. With a collection of over 5,000 vehicles and 17,000 employees, and a presence in over 120 countries, FedEx offers next-day, late collection and early morning deliveries to consumers across Europe, as well as next-day deliveries to the US and Asia through the FedEx Express hub. In today’s article, we are going to answer the question: Can you buy a FedEx franchise in the UK? And then we’re going to consider how else you can get involved with the global brand.
FedEx’s range of delivery services and long history of successful transactions has enabled it to cultivate a reputation among consumers as a top international courier business. Most people will have heard of the business and seen the famous arrow that appears between the ‘E’ and ‘X’ of its logo. Today, the FedEx brand is a $30 billion corporation. It operates from a headquarters in Amsterdam and uses the services of 46 airports across the world. In the UK alone, there are 56 FedEx depots facilitating the transportation of parcels across the globe.
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- Courier Service UK: Deliver Business Success with a Franchise. The sales increased by an impressive 12 percent to reach £12.6 billion, which completed a growth of a staggering 62 percent since 2014. Volume sales surged by 14 percent alone in 2018 and we sent around 3.65 billion packages (a significant rise from 3.2 billion the year before). But what’s in store for the lucrative sector? Well, over the next five years, it’s predicted that volumes will maintain double-digit figure growth each year, increasing by 54 percent between now and 2023. The value of sales is also predicted to grow by 42 percent over this period. Why is the sector so successful? The top three reasons why UK consumers are choosing to have goods delivered rather than shopping in-store is because of the larger variety (39 percent), the ease of online shopping (51 percent), and most significantly, the cost (53 percent). It’s also been found that eight percent of consumers are tempted to buy online because of an unlimited delivery subscription they have. Innovation in the industry The majority of innovations in the delivery market are geared towards increasing overall efficiency. However, around 80 percent of consumers surveyed said they would be unwilling to let a delivery driver access their homes when no-one was in. Therefore, access control schemes are in their infancy and might well be for a while as the customer base seems reluctant. Whereas, receiving a parcel at an agreed location away from home seems like a promising option, with 47 percent of consumers saying they would be interested in this. To combat this reluctancy, there is an opportunity for smart doors and smart boxes that use expanding compartments to allow couriers to deliver packages to a secure location without needing access to the home. However, Marco concludes that these are still mainly a prototype. One of the retail analysts at Mintel, Marco Amasanti says: “The courier and express delivery market is booming, much of which is underpinned by surging online retail sales. However, the marketplace remains hugely competitive, marked by slim margins and a growing expectation to provide more for less. “Looking forward, rising demand for delivery subscriptions brings added pressures; particularly the growing amount of returns, which require extra processing, storage and logistics. “However, for those who remain in the market, the future looks bright. Major players should further consolidate, given continued value and volume growth; both of which show little sign of abating as online retail appears far from reaching its ceiling.” How to get involved with FedEx as a self-employed worker • The best way is to join FedEx as an independent contractor. The company states that its entire fleet is exclusively made up of “owner operators”. Therefore, there is an opportunity for vehicle owners – or prospective vehicle owners – to become one of FedEx’s team of delivery drivers. The business hires drivers with cargo vans, small and large trucks and tractor trailers, so if you are the owner of one of these, the company wants to hear from you. • Once you’re on board, FedEx has an extensive support system in place to help independent contractors get the most out of the role – and maximise the business’ success. • First of all, the company has implemented an in-house team dedicated to supporting delivery drivers, so any thoughts, queries or complaints should be addressed to them. The separate Contractor Relations Department can solve issues relating to the fleet, such as your lease agreement, while a Contractor Settlements team sorts everything to do with your paycheque. Being on the road for the entirety of the working day has its dangers, so FedEx has established a Safety Department to inspect the fleet vehicles and minimise the risk of an accident. • In terms of the day-to-day delivery schedule, FedEx ‘dispatchers’ help you find delivery requests that are suitable for your vehicle. What’s more, fleet specialists are always on hand to solve any urgent issues. Alternatively, drivers can also access the Voice Response Unit (VRU) at any time to find information surrounding daily operations. On top of all this, FedEx keeps drivers in the loop by sending weekly email updates and alerts directly to drivers’ vehicles and organising regular meetings and conferences. • If this isn’t enough for drivers, they can search the ‘owner-operator extranet’ for the answers to their questions. There, you can discover key tools, vehicle tracking information, delivery profit data, payment documents and company policies. This huge bank of information, which can be accessed through various platforms, serves to ensure that FedEx runs as smoothly as possible and that all the drivers are happy, fulfilled and productive. • Once delivery drivers are ingratiated into the system, FedEx rewards their hard work by giving prizes to the fleet members who have best reflected the company’s values. The Five Star Award is presented to those who demonstrate good profitability and teamwork. The Purple Promise is a set of prizes that reward great customer service, while the FedEx Humanitarian Award is bestowed upon those who go above and beyond for the good of the customer. These awards were introduced with the aim to inspire and motivate new recruits to perform their job to the highest standard. Can’t start a FedEx franchise? – there are other ways to join the brand While you can’t start your own delivery franchise with FedEx, if you’re eager to be part of the brand in whatever way possible, there is scope to become a self-employed worker. The UK courier and delivery industry is clearly thriving due to our online shopping habits, with the online retail sector valuing around £67.6 billion in 2018 (Mintel). So, what better time to enter the industry, whether that be as a FedEx owner-operator or another delivery franchise owner? We have a good selection of delivery franchise opportunities on our books a the moment. You can read more about three of our top picks in another one of our articles here. All of these fantastic franchise opportunities can be launched for under £40,000 too!>)
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How did FedEx begin?
The idea behind FedEx was thought up over 50 years ago in 1965, when a Yale undergraduate named Frederick W. Smith identified the demand for a delivery service that could accommodate time-sensitive shipments such as medicine, computer parts and electronics. He described his idea for the FedEx system in a term paper, which received an average mark.
In the early 1990s, Federal Express took advantage of intercontinental transportation links to provide a service that would allow customers to send parcels that would be shipped overnight and delivered the following day. This was called ExpressFreighter, and was introduced in the US, Europe and Asia.
It was only in 1994 that the company shortened its brand name to the familiar ‘FedEx’ that we know today. Since then, the business has taken steps to further boost its public profile. For example, in 2015, it became the main sponsor of one of the leading European football organisations, the UEFA Europa League, which reinforced its presence to a swathe of consumers across the continent.
Can you buy a FedEx franchise in the UK?
No. Unfortunately, FedEx is not a courier franchise and does not currently offer franchising opportunities. However, there are other ways to work with the company as a self-employed worker.
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The courier and express delivery market in the UK
Our love of online shopping and having a wide range of products delivered straight to our door in record time has done wonders for the UK courier and express delivery market. So much so that it hit £12.6 billion last year and, in the six months leading up to February, 81 percent of British consumers used courier services (Mintel).
The sales increased by an impressive 12 percent to reach £12.6 billion, which completed a growth of a staggering 62 percent since 2014. Volume sales surged by 14 percent alone in 2018 and we sent around 3.65 billion packages (a significant rise from 3.2 billion the year before).
But what’s in store for the lucrative sector?
Well, over the next five years, it’s predicted that volumes will maintain double-digit figure growth each year, increasing by 54 percent between now and 2023. The value of sales is also predicted to grow by 42 percent over this period.
Why is the sector so successful?
The top three reasons why UK consumers are choosing to have goods delivered rather than shopping in-store is because of the larger variety (39 percent), the ease of online shopping (51 percent), and most significantly, the cost (53 percent). It’s also been found that eight percent of consumers are tempted to buy online because of an unlimited delivery subscription they have.
Innovation in the industry
The majority of innovations in the delivery market are geared towards increasing overall efficiency. However, around 80 percent of consumers surveyed said they would be unwilling to let a delivery driver access their homes when no-one was in. Therefore, access control schemes are in their infancy and might well be for a while as the customer base seems reluctant. Whereas, receiving a parcel at an agreed location away from home seems like a promising option, with 47 percent of consumers saying they would be interested in this.
To combat this reluctancy, there is an opportunity for smart doors and smart boxes that use expanding compartments to allow couriers to deliver packages to a secure location without needing access to the home. However, Marco concludes that these are still mainly a prototype.
One of the retail analysts at Mintel, Marco Amasanti says:
“The courier and express delivery market is booming, much of which is underpinned by surging online retail sales. However, the marketplace remains hugely competitive, marked by slim margins and a growing expectation to provide more for less.
“Looking forward, rising demand for delivery subscriptions brings added pressures; particularly the growing amount of returns, which require extra processing, storage and logistics.
“However, for those who remain in the market, the future looks bright. Major players should further consolidate, given continued value and volume growth; both of which show little sign of abating as online retail appears far from reaching its ceiling.”
How to get involved with FedEx as a self-employed worker
- The best way is to join FedEx as an independent contractor. The company states that its entire fleet is exclusively made up of “owner operators”. Therefore, there is an opportunity for vehicle owners – or prospective vehicle owners – to become one of FedEx’s team of delivery drivers. The business hires drivers with cargo vans, small and large trucks and tractor trailers, so if you are the owner of one of these, the company wants to hear from you.
- Once you’re on board, FedEx has an extensive support system in place to help independent contractors get the most out of the role – and maximise the business’ success.
- First of all, the company has implemented an in-house team dedicated to supporting delivery drivers, so any thoughts, queries or complaints should be addressed to them. The separate Contractor Relations Department can solve issues relating to the fleet, such as your lease agreement, while a Contractor Settlements team sorts everything to do with your paycheque. Being on the road for the entirety of the working day has its dangers, so FedEx has established a Safety Department to inspect the fleet vehicles and minimise the risk of an accident.
- In terms of the day-to-day delivery schedule, FedEx ‘dispatchers’ help you find delivery requests that are suitable for your vehicle. What’s more, fleet specialists are always on hand to solve any urgent issues. Alternatively, drivers can also access the Voice Response Unit (VRU) at any time to find information surrounding daily operations. On top of all this, FedEx keeps drivers in the loop by sending weekly email updates and alerts directly to drivers’ vehicles and organising regular meetings and conferences.
- If this isn’t enough for drivers, they can search the ‘owner-operator extranet’ for the answers to their questions. There, you can discover key tools, vehicle tracking information, delivery profit data, payment documents and company policies. This huge bank of information, which can be accessed through various platforms, serves to ensure that FedEx runs as smoothly as possible and that all the drivers are happy, fulfilled and productive.
- Once delivery drivers are ingratiated into the system, FedEx rewards their hard work by giving prizes to the fleet members who have best reflected the company’s values. The Five Star Award is presented to those who demonstrate good profitability and teamwork. The Purple Promise is a set of prizes that reward great customer service, while the FedEx Humanitarian Award is bestowed upon those who go above and beyond for the good of the customer. These awards were introduced with the aim to inspire and motivate new recruits to perform their job to the highest standard.
Can’t start a FedEx franchise? – there are other ways to join the brand
While you can’t start your own delivery franchise with FedEx, if you’re eager to be part of the brand in whatever way possible, there is scope to become a self-employed worker. The UK courier and delivery industry is clearly thriving due to our online shopping habits, with the online retail sector valuing around £67.6 billion in 2018 (Mintel). So, what better time to enter the industry, whether that be as a FedEx owner-operator or another delivery franchise owner? We have a good selection of other delivery franchise opportunities on our books at the moment.
Discover other franchise opportunities
Becky Martin, writer