FedEx + Amazon: What This Deal Means for Contractors & the Future of Delivery Vehicles

A new era of last-mile delivery is here.
With FedEx officially partnering with Amazon to handle oversized residential deliveries—think treadmills, couches, and big-screen TVs—FedEx Ground contractors should start planning now. As UPS scales back, FedEx is stepping in, and that means more routes, more volume, and more opportunity for growth across the Ground network.

But with big opportunities come even bigger operational demands.

What This Means for FedEx Contractors

If you're already operating as a FedEx Ground contractor, this partnership signals a major shift in your day-to-day logistics. Oversized freight isn’t like your typical package run—it requires specialized vehicles, additional labor, and more time at each stop.

Here’s what to consider:

  • Fleet Readiness:
    Are your trucks built to handle large or bulky items? Standard P700s may not cut it for these deliveries. Now’s the time to look at high-capacity step vans like the Freightliner P1000 - P1200 or Ford F59 18'-22' models—many of which are available new or reconditioned at Fleet Source.

  • Operational Planning:
    Heavy freight often requires two-person teams and liftgate access. Have you evaluated staffing needs or added the right equipment to your step vans?

  • Contract Adjustments:
    Will your current agreement with FedEx account for the extra workload, time, and risk? Higher margins can disappear quickly if you're not prepared.

At Fleet Source, we’ve helped hundreds of FedEx contractors upgrade their fleets to match evolving route demands. Whether it’s a larger step van, reconditioned unit, or custom upgrade—we’ve got the solutions to help you stay ahead.

For New Investors: Opportunity Meets Complexity

If you're thinking about buying FedEx Ground routes, this deal adds a layer of complexity—but also potential. Oversized freight can be profitable, but it’s not plug-and-play. You’ll need a smart, scalable model.

Ask yourself:

  • Can your fleet handle the weight and space needs of large residential items?

  • Do your projections factor in longer stops and higher delivery effort?

  • Are you sourcing vehicles that meet current FedEx delivery specs?

Fleet Source provides turnkey truck solutions for new investors entering the Ground network. We help you start strong—with the right equipment and the insight to succeed.

Our Take: The Future is Bigger—So Should Your Fleet

This FedEx-Amazon partnership marks a significant pivot in the logistics world. Whether you're a seasoned contractor or a new investor, your ability to adapt—especially in terms of your vehicle fleet—will determine your profitability.

At Fleet Source, we specialize in reconditioned and new step vans built specifically for FedEx contractors. We know what works, and we stock what sells.

✅ Inventory of Ford and Freightliner Step Vans (14’ to 22’)
✅ Refurbished units ready for peak season
✅ Nationwide shipping
✅ Flexible Financing

Need to upgrade your fleet or plan for future volume?
Contact Fleet Source today to explore current inventory or get expert recommendations.

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FedEx Express & Ground Merger: What It Means for Contractors in 2025