Who was Fred Smith, the FedEx founder behind global next-day delivery? All you need to know
"Fred was more than just the pioneer of an industry and the founder of our great company. He was the heart and soul of FedEx..", wrote Raj Subramaniam, FedEx CEO and President.
Who was Fred Smith?
Frederick W. Smith, the founder of FedEx Corp., passed away on Saturday, at the age of 80, confirmed FedEx. Widely credited with reshaping global logistics, Smith transformed a bold idea conceived at Yale into one of the world’s largest courier services. He not only left behind a legacy of innovation in logistics but also a fortune valued at $6 billion, according to Celebrity net worth. "It is with profound sadness and a heavy heart that I share that Frederick W. Smith, our founder and executive chairman, died earlier today. Fred was more than just the pioneer of an industry and the founder of our great company. He was the heart and soul of FedEx..", wrote Raj Subramaniam, FedEx CEO and President.
Early life and wartime service
Born in 1944 in Marks, Mississippi, Smith was raised by his mother after his father died when he was four. Fascinated by aviation, he became a pilot as a teenager. He attended Yale University, where he wrote a paper outlining the hub-and-spoke model that would later underpin FedEx. After graduating, he joined the US Marines, serving two tours in Vietnam and earning the Silver Star, Bronze Star, and two Purple Hearts.
The birth of FedEx
Smith launched Federal Express in 1971 using a $4 million inheritance and $91 million in venture capital. Despite facing early financial trouble, including once covering payroll with gambling winnings, he persisted. Operations began in 1973 with 14 jets serving 25 cities. By implementing a centralised hub in Memphis, Tennessee, Smith introduced the concept of overnight package delivery by air.
Breaking through industry norms
In an era dominated by UPS and the U.S. Postal Service, Smith challenged the status quo with speed and reliability. FedEx's “When it absolutely, positively has to be there overnight” campaign resonated widely. Later innovations included barcoded tracking and a ground network acquired through Caliber Systems in 1998, evolving into FedEx Ground.
Adapting to the e-commerce era
Under Smith’s leadership, FedEx expanded to meet rising e-commerce demand, especially during the COVID-19 pandemic. He introduced seven-day residential delivery and upgraded logistics software. These moves helped the company manage soaring parcel volumes while distancing itself from Amazon in 2019 after a contract dispute.
Controversies and convictions
Smith was a vocal opponent of trade protectionism during the Trump administration. He resisted unionisation efforts within FedEx and faced legal challenges early in his career, including a forgery charge for which he was acquitted. Despite setbacks, including missteps in Europe and the failed fax-document business, he maintained control of FedEx, holding around 8 per cent of its stock. At the time of his death, Smith’s net worth was estimated at $6 billion. He leaves behind ten children, including Richard W. Smith, CEO of FedEx’s airline.
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