The courier industry in India has an annual growth rate of 25%, which is considered to be phenomenal when compared with other sectors. By the end of this year, the courier service market is expected to reach around 4000 crores.
This is mostly due to e-commerce sales in the country. It is estimated that the e-commerce industry will hit a staggering $100 billion in 2020. Hence, a courier service is always going to be a lucrative business. In this article, we’ll take a look at how to open a FedEx Franchise in India.
History of FedEx Logistics
In 1971, Frederick W. Smith, a former Marine pilot who served in Vietnam, founded Federal Express Corporation. It was initially started as an overnight delivery service. In 2000, Federal Express was renamed FedEx Express, and currently, it serves in more than 220 countries. On a business day, FedEx ships more than 14 to 15 million shipments.
Why Should You Take a Franchise of FedEx?
FedEx is a worldwide leader in logistics, and in India, it is known as FedEx India. All logistics operation in India is being operated by the FedEx India team. FedEx provides affiliate programs to interested people to make them a partner. When you become a partner, you can start your own FedEx business in your own town or city in India. One cannot see much information about how to open a franchise in their official website but can get information through their customer support.
FedEx provides a wide range of shipping services from air-freight to ground shipping and even FedEx Critical service for emergency shipments. They have their own fleet of airplanes for shipping goods across international borders. One can find all kinds of shipping plans including standard delivery, overnight shipment, express delivery, heavyweight freight, etc. No matter what type of package or goods you need to transport, FedEx delivers.
Things You Should Know about FedEx Logistics Franchise
FedEx doesn’t offer people with a franchise model, but there are other ways that you can become a partner with FedEx and make money.
FedEx Ground Business Model
FedEx offers a Ground business model that enables people to get partnered with FedEx as Independent Contractors or Independent Service Providers. Once you become an ISP (Independent Service Provider), you can choose the routes you are comfortable delivering the goods.
You can also negotiate the rates accordingly. When you become an ISP, you need to maintain your own fleet of trucks and drivers, etc. And one more highlight of the FedEx Ground business model is that the routes are transferrable. In situations when you decide to move over to a new business, you can easily sell the route to another ISP.
Another opportunity to partner with FedEx is through the FedEx Authorized Shipcenter program. Through this program, people can open a store that collects shipment from customers, weigh it, pack it and collect the appropriate amount based on the weight.
This program allows store owners to make money based on the number of shipments made on an average in a day/week etc. Another advantage of owning a shipping center is that all shipments made through these stores receive waivers from some charges, including additional handling charges, Saturday pick-up fees, correction fees, undelivered charges, etc.
Requirements for Starting a Franchise of FedEx in India
If you are thinking of taking a FedEx Logistics Franchise in your city, then please read carefully the requirements that need to be fulfilled:
Area Requirement
To open a FedEx Authorized Shipcenter, you need to have a shop or a store to accept packages from customers. Also, ship centres need to have internet access, a weighing scale and a computer to process the payments, etc. One needs to have a minimum area requirement of 250-500 sq. ft along with a counter to accept packages.
To start a FedEx Ground business, you need to have your own fleet of delivery vehicles and trained drivers.
Experience and Skills
To get a FedEx courier franchise, either a ground business route or an authorized ship centre, FedEx will look for people with experience about running a store or a business already. Other than that, there is not any special requirement for starting the business.
Training
FedEx will supply every franchisee with complete training on how to do the packing, accurately weigh the packages, and even using the FedEx payment system for billing purposes. FedEx also provides its affiliates with a detailed manual of the dos and don’ts of the FedEx business.
Investment – How Much Does a FedEx Franchise Cost in India?
The total cost required to open the franchise may vary between 2 to 5 lakhs rupees and need to pay a royalty commission of 30% to FedEx.
How to Apply for a FedEx Courier Franchise?
If you are interested in starting a FedEx Franchise, you can just send in an email, make a call or chat with their customer support people online.
Email for Franchise Queries
Email: india@FedEx.com
FedEx Courier Franchise Contact Number
Phone : 1800 419 4343 / 022 25714444
Final Thoughts
FedEx is a global leader in logistics services and serves more than 220 countries across the globe. If you are serious about starting your own business, then why not check out opening a FedEx franchise and become part of a famous brand.
I hope we’ve provided all the details you needed to know more about FedEx and how to start a FedEx Franchise in India. If you have any further queries, do let us know by commenting below and we will get in touch with you soon.