FedEx founder Fred Smith died Saturday at 80, the company said in a statement.
Smith started FedEx over 50 years ago, turning it into an iconic brand.
Smith was an influence player in Washington, DC, where he pushed for policies and nudged presidents.
Frederick Wallace Smith, the founder and former CEO of FedEx, died Saturday at the age of 80.
Smith’s death was confirmed by FedEx in a statement. He is survived by his wife, nine of his 10 children, and numerous grandchildren.
“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 — its PSP culture, values, integrity, and spirit,” Smith’s successor, CEO Raj Subramaniam, said. “He was a mentor to many and a source of inspiration to all.”
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Smith, who built FedEx over 50 years ago, was a celebrated entrepreneur who often served as a bellwether for the US economy and global trade for politicians and the media.
He was called to the White House as recently as March 2022 to discuss the economic matters of the day. Over the years, he wrote op-eds for the Wall Street Journal, pushing policies, nudging presidents, and lodging grievances.
“History shows that trade made easy, affordable, and fast—political obstacles notwithstanding—always begets more trade, more jobs, more prosperity,” he said at a Yale University class of 1966 reunion in 2016.
He built FedEx in his hometown of Memphis, where he was the top business leader for decades.
“Memphis is kind of a one-name town. There’s Elvis. There’s Cybill. And there’s Fred,” said Tennessee Congressman Steve Cohen when introducing Smith at a congressional hearing in 2021.
In an age where tech founders and CEOs have attained celebrity status, Smith represented a more traditional version of the quintessential American dream, favoring visits to Washington over Hollywood.
Smith announced he would step down as CEO in March 2022, handing the reins to lieutenant Raj Subramaniam and taking on the role of executive chairman.
“FedEx has changed the world by connecting people and possibilities for the last 50 years,” Smith said in a statement announcing the change. He said he planned to spend his time focused on sustainability, innovation, and public policy going forward.
Founding FedEx
FedEx founder Fred Smith
FedEx founder Fred Smith. Bettmann / Getty Images
Smith was born in 1944 and served in the US Marine Corps during the Vietnam War. In 1971, at the age of 27, he founded Federal Express with $4 million in inheritance and $91 million in venture capital — an immense sum at the time.
Working from an idea he developed as a student at Yale, Smith based his logistics network on a bank clearing house: Packages would go first to FedEx’s central location and to their final destination the next day. Today, Smith is largely credited with inventing the concept of guaranteed overnight delivery.
In the early days, FedEx focused on the medical and manufacturing industries, where parts and materials are often needed urgently. The company bought its first plane in 1973, turned its first profit after four years in business, and only grew from there.
Smith said his time in the Marine Corps gave him a high tolerance for risk. Business decisions felt light compared to the life-and-death choices he had made in Vietnam. At one point in the early days, FedEx had just $5,000 left. Smith took the money, flew to Las Vegas, turned it into $27,000 playing blackjack, and used the windfall to pay fuel suppliers.
In the late 1970s, airline deregulation allowed FedEx to buy hundreds of planes and construct an international network.
In a 1983 interview, 60 Minutes’ Morley Safer asked the 39-year-old Smith if he ever doubted FedEx would be a success.
“Well, that would be an understatement,” Smith replied with a laugh.
Starting around that time, Smith grew his company with dozens of acquisitions. His 1989 purchase of cargo airline Flying Tigers made FedEx the largest full-service, all-cargo airline in the world, which remained for decades, and still is. He bought delivery firm RPS in 1997, which would become FedEx Ground, and Kinko’s in 2004 to form the FedEx Office retail store network.
By 2021, the company was shipping roughly 3 billion packages every year, with 688 planes in 220 countries and territories.
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