How Does Fedex Pay Contractors

As a major player in the logistics and courier industry, FedEx operates with a diverse network of independent contractors to fulfill its delivery and transportation needs. These contractors are self-employed individuals who work on a contract basis for FedEx and are responsible for their own equipment, fuel, and insurance.

So, how does FedEx pay its contractors? The answer is two-fold – through negotiated rates and invoice submission.

Negotiated Rates

Before the contractor begins working with FedEx, they negotiate a rate for their services based on several factors such as distance, weight, and the type of parcel being delivered. These rates are agreed upon in advance and are typically set for a certain period.

The negotiated rate covers the cost of delivery services, and the contractor is responsible for all other expenses, including vehicle maintenance, insurance, and fuel. This means that the contractor is responsible for ensuring they meet their financial obligations to carry out the agreed work.

Invoice Submission

Once a contractor completes a delivery or transportation job, they submit an invoice to FedEx for payment. This invoice includes the negotiated rate for the job, as well as any additional costs incurred by the contractor.

The invoice submission process is streamlined to ensure timely and accurate payments. FedEx provides a dedicated online portal to contractors where they can submit invoices, monitor payment status, and view past payment records.

FedEx typically processes payments to contractors within 30 days of invoice submission, and the payment method may vary from contractor to contractor. Some may prefer a direct deposit into their bank account, while others may prefer a mailed check.


In summary, FedEx contracts with independent contractors for delivery and transportation services, and payment is made based on a negotiated rate and invoice submission process. This mutually beneficial model ensures that both parties have a clear understanding of expectations and can work together to reach a common goal of efficient delivery of parcels and goods.