Let me share with you a well-kept secret: FedEx does not own the FedEx truck that delivers packages to your home. Here is another one: FedEx does not employ the driver of that truck. FedEx subcontracts with companies like ours to deliver packages to people’s homes. Companies like ours are the ones that buy the trucks and hire the drivers to deliver the packages. “Okay, but what does that mean to me?” you are probably wondering.
District Delivery is an independent contractor that has an agreement to deliver packages for FedEx Home Delivery for certain routes in the Greater Washington, DC metropolitan area, specifically including the near Virginia suburbs including, Alexandria, Va. We employ 14 drivers and have 14 trucks. In the off-peak season we deliver approximately 7500 per week. In peak season volume increases by approximately 200 - 300% and we will employ 24 drivers and will have 24 trucks. Like other multiple route owners, we are eligible for certain monthly and quarterly bonuses which can add as much as 15 - 20 % to our income.
We have two main ways to expand our business and increase our revenue – maintaining an excellent record of timely and safe delivery of packages and acquiring additional routes. In our business, we are rated by FedEx on our ability to deliver packages in a timely, effective and safe manner. If we are successful in doing so, we will be eligible for certain monthly and quarterly bonuses. In the aggregate, those bonuses can be significant. In addition, maintaining a timely, effective and safe delivery record puts us in a position to acquire additional delivery routes, if and when they become available.
Currently, we are seeking investment capital in order to acquire additional routes that are, or soon will be, available.