FedEx Corporation, formerly Federal Express Corporation and later FDX Corporation, is an American multinational conglomerate holding company focused on transportation, e-commerce and business services based in Memphis, Tennessee.[5][6] The name “FedEx” is a syllabic abbreviation of the name of the company’s original air division, Federal Express, which was used from 1973 until 2000. FedEx today is best known for its air delivery service, FedEx Express, which was one of the first major shipping companies to offer overnight delivery as a flagship service. Since then, FedEx also started FedEx Ground, FedEx Office (originally known as Kinko’s), FedEx Supply Chain, FedEx Freight, and various other services across multiple subsidiaries, often meant to respond to its main competitor, UPS. FedEx is also one of the top contractors of the US government and assists in the transport of some United States Postal Service packages through their Air Cargo Network contract.[7]
FedEx’s prominence in both the United States and the world have made it a common topic in popular culture, with examples including the film Cast Away as well as some of its marketing slogans (most famously “when it absolutely positively has to be there overnight”). In addition, FedEx has purchased the naming rights to FedExField of the NFL’s Washington Commanders and FedExForum of the NBA’s Memphis Grizzlies. FedEx’s air shipping services have made its main hub (aka the “Superhub”) at Memphis International Airport the busiest cargo airport in the world by 2020.
The company was founded in Little Rock, Arkansas in 1971 as Federal Express Corporation by Frederick W. Smith, a graduate of Yale University. He drew up the company’s concept in a term paper at Yale, in which he called for a system specifically designed for urgent deliveries. While his professor didn’t think much of the idea, Smith pressed on. He began formal operations in 1973, when he moved operations to Memphis. Smith cited his reasons for choosing Memphis International Airport included its location near the mean population center of the country and its lack of frequent inclement weather.[8]
The company grew rapidly, and by 1983 had a billion dollars in revenues, a rarity for a startup company that had never taken part in mergers or acquisitions in its first decade. It expanded to Europe and Asia in 1984. In 1988, it acquired one of its major competitors, Flying Tiger Line, creating the largest full-service cargo airline in the world. In 1994, Federal Express shortened its name to “FedEx” for marketing purposes, officially adopting a nickname that had been used for years.[8]
Reorganization and Caliber acquisition
A Federal Express McDonnell Douglas MD-11 in 1995
On October 2, 1997, FedEx reorganized as a holding company, FDX Corporation, a Delaware corporation.[9] The new holding company began operations in January 1998, with the acquisition of Caliber System Inc. by Federal Express. With the purchase of Caliber, FedEx started offering other services besides express shipping. Caliber subsidiaries included RPS, a small-package ground service; Roberts Express, an expedited shipping provider; Viking Freight, a regional, less-than-truckload freight carrier serving the Western United States; Caribbean Transportation Services, a provider of airfreight forwarding between the United States and the Caribbean; and Caliber Logistics and Caliber Technology, providers of logistics and technology services. FDX Corporation was founded to oversee all of the operations of those companies and its original air division, Federal Express.[8]
In January 2000, FDX Corporation changed its name to FedEx Corporation and re-branded all of its subsidiaries. Federal Express became FedEx Express, RPS became FedEx Ground, Roberts Express became FedEx Custom Critical, and Caliber Logistics and Caliber Technology were combined to comprise FedEx Global Logistics. A new subsidiary, called FedEx Corporate Services, was formed to centralize the sales, marketing, and customer service for all of the subsidiaries. In February 2000, FedEx acquired Tower Group International, an international logistics company. FedEx also acquired WorldTariff, a customs duty and tax information company; TowerGroup and WorldTariff were re-branded to form FedEx Trade Networks.[8]
21st century
FedEx Express delivery van in Miami
FedEx Corp. acquired privately held Kinko’s, Inc. in February 2004 and re-branded it FedEx Kinko’s. The acquisition was made to expand FedEx’s retail access to the general public. After the acquisition, all FedEx Kinko’s locations offered only FedEx shipping.[8] In June 2008, FedEx announced that they would be dropping the Kinko’s name from their ship centers; FedEx Kinko’s would now be called FedEx Office.[10][11] In September 2004, FedEx acquired Parcel Direct, a parcel consolidator, and re-branded it FedEx SmartPost.[8]
In April 2015, FedEx acquired their rival firm TNT Express for €4.4 billion ($4.8 billion; £3.2 billion) as it looked to expand their operations in Europe.[12][13]
In February 2016, FedEx announced the launch of FedEx Cares, a global giving platform, and committed to invest $200 million to strengthen more than 200 communities by 2020.[14][15]
In March 2018, FedEx announced the acquisition of P2P Mailing Limited, a last-mile delivery service, for £92 million to expand their portfolio.[16]
In June 2019, FedEx announced they would not be renewing their $850 million contract with Amazon for the company’s U.S. domestic express delivery business. Amazon accounted for 1.3 percent of 2018 revenues.[17] In August 2019, FedEx announced the termination of ground deliveries for Amazon as well.[18]
In December 2020, FedEx acquired ShopRunner, an e-commerce platform.[19]
On March 29, 2022, founder Frederick W. Smith announced he would be retiring as CEO and become executive chairman effective June 1, 2022. The company named Raj Subramaniam, FedEx’s current president and COO, as Smith’s successor.[20][21]