Amazon DSP vs. FedEx Ground: What Contractors Need to Know
The growth of e-commerce has fueled two giants in the delivery space: Amazon DSP (Delivery Service Partner) operators and FedEx Ground contractors. On the surface, both handle last-mile delivery—but the business models, contracts, and long-term opportunities are very different.
As a dealership that sells and reconditions step vans for FedEx contractors, we’ve seen firsthand how these differences play out—especially now that many former Amazon trucks are entering the market. With Amazon cycling out vehicles and FedEx contractors needing reliable fleet options, it’s worth exploring how these two routes compare and why FedEx continues to offer stronger long-term value.
1. FedEx Contractors Don’t Compete with Amazon
FedEx Ground officially cut ties with Amazon in 2019. At that time, Amazon packages accounted for less than 2% of FedEx’s volume. FedEx contractors barely felt the shift, and since then, FedEx has continued to grow without Amazon in the mix.
Takeaway: FedEx contractors operate independently and aren’t dependent on Amazon’s business decisions—a big difference in stability.
2. Contract Rights & Equity
FedEx Ground: Contractors own the rights to their territories (for P&D) or lanes (for linehaul). These contracts build equity and can be sold later.
Amazon DSP: No territory ownership. Routes change weekly, and contracts are non-transferable. Operators essentially have a job—not a business asset.
Why it matters for Trucks: FedEx contractors investing in their fleet know they are building equity in a long-term business is an investment in a real asset, not a short-term arrangement.
3. Entry Costs & Revenue Streams
Amazon DSP: Lower startup costs with Amazon-subsidized equipment, but unpredictable revenue week to week.
FedEx Ground: Higher entry costs, since buyers must acquire a contract, but revenue is predictable and consistent.
For trucks: Predictability makes it easier for FedEx contractors to justify investing in a quality trucks—especially when compared to the uncertainty of Amazon DSP work.
4. Operating Authority & Liability
Amazon DSPs: Must hold their own DOT authority, manage compliance, and carry heavy insurance policies. One major violation could shut them down.
FedEx Contractors: Operate under FedEx’s DOT authority, with indemnification from FedEx. This significantly reduces liability.
Fleet insight: FedEx’s umbrella protections mean contractors can focus on scaling routes and maintaining their fleet, not fighting regulatory battles.
5. Day-to-Day Operations
Amazon DSP: Operators are expected to be on-site daily, managing multiple dispatch waves (often stretching into evening hours).
FedEx Ground: Typically one morning dispatch. Many contractors manage remotely and own multiple businesses.
Truck angle: FedEx contractors benefit from simplified scheduling and reliable dispatch windows—making it easier to manage driver availability, vehicle usage, and fleet rotation.
6. What This Means for Step Vans
Here’s where our dealership sees the overlap:
Amazon cycles out thousands of step vans each year. These vehicles, often Freightliner MT45/MT55 or Ford F59 models, are still strong workhorses which many have low mileage and have been lease-maintained.
We often buy these off-lease Amazon trucks, each unit will go through our Fleet Source reconditioning process which includes full electrical, mechanical and cosmetic work to upgrade them for FedEx standards.
Contractors get the benefit of a lower-cost vehicle that looks and performs like new—without the Amazon blue paint or branding or the much higher upfront cost of purchasing a new step van.
For FedEx contractors, this is the best of both worlds: dependable equipment at a better price point, ready to generate revenue on day one.
Conclusion
While Amazon DSPs and FedEx Ground may seem similar, the long-term opportunity, contract stability, and ability to build equity make FedEx the clear winner. For contractors, having the right fleet is part of that equation and Fleet Source is here to help.
That’s where we come in—supplying reconditioned step vans, ready to hit the road for FedEx Contractors.
👉 If you’re looking to expand your fleet or replace aging trucks, explore our current inventory. Our team specializes in FedEx-ready vehicles designed to help contractors scale profitably.