MEMPHIS, Tenn. (AP) — Fred Smith, the founder of FedEx Corp. who transformed the express delivery sector, has passed away at the age of 80. His demise was confirmed by the company, which he built into a global powerhouse in transportation and logistics.
Smith established FedEx in 1973, providing a speedy alternative to the postal service for small parcels and documents. Over the course of nearly five decades, he led the company to become an essential economic indicator due to its reliance by countless businesses. Headquartered in Memphis, Tennessee, FedEx now handles an average of 17 million shipments each business day. While Smith stepped down as CEO in 2022, he continued to serve as executive chairman.
A graduate of Yale University in 1966, Smith devised a "hub and spokes" delivery system as a business theory while in college. This innovative approach centered on air cargo flights from a primary hub to numerous destinations, significantly influencing the overall logistics landscape. His vision also facilitated a shift in American businesses toward a reliance on time-sensitive deliveries rather than maintaining large inventories and warehouses.
Smith famously named his company Federal Express to convey a sense of importance—despite its existence as a start-up with uncertain prospects. This marketing strategy was partly motivated by his attempts to secure a shipping contract with the Federal Reserve Bank, which ultimately did not materialize. In its infancy, Federal Express operated 14 small aircraft from Memphis International Airport, reaching out to 25 U.S. cities.
Born into a family of entrepreneurs, Smith's father, Frederick Smith, built a fortune in Memphis through a regional bus line and other ventures. Following his graduation, Fred Smith served in the U.S. Marines, achieving the rank of captain after two tours in Vietnam during which he was decorated for valor and sustained injuries in combat. In a 2023 interview, he attributed his management style and philosophy at FedEx to his military experiences rather than his education at Yale.
Launching Federal Express proved to be a daunting task, as overnight shipping was a nascent concept in American commerce. The company needed a well-coordinated fleet of planes and a robust network of interconnecting air routes from the outset. While Smith was a prominent figure in Memphis, he famously maintained a low public profile, focusing his efforts on work and family.
Despite his desire for privacy, Smith made a brief appearance in the 2000 film “Castaway,” featuring Tom Hanks, which portrayed a FedEx employee stranded on a deserted island. U.S. Representative Steve Cohen from Tennessee expressed the impact of Smith’s passing, stating, "Memphis has lost its most important citizen, Fred Smith." Cohen highlighted Smith's contributions to various local institutions, including the University of Memphis and the city zoo, and recognized FedEx as an economic engine largely driven by Smith's innovative vision.
Although Smith rarely promoted the charitable contributions made by him and his family, he took the opportunity to discuss a recent gift to the Marine Corps Scholarship Foundation, aimed at establishing a scholarship fund for children of Navy service members pursuing STEM education. He emphasized, "The thing that’s interested me are the institutions and the causes, not the naming or the recognition." When asked about the significance of giving back to society, Smith remarked on America's generosity, expressing that successful individuals have a responsibility to contribute to public welfare, a tradition he believed should be upheld.
