Fred Smith, the visionary founder and executive chairman of FedEx, passed away on Saturday, June 21, at the age of 80. Born in 1944 in Marks, Mississippi, Smith revolutionized global commerce by pioneering the overnight delivery model. He founded FedEx in 1971, launching operations in 1973 with just 14 planes and 389 employees. Despite early financial struggles, his innovative “hub-and-spoke” system transformed logistics worldwide. Under his leadership, FedEx grew into a global giant with over 700 aircraft and 500,000 employees. FedEx CEO Raj Subramaniam described Smith as the “heart and soul” of the company and a mentor and inspiration to many.
Early Life
Frederick Wallace “Fred” Smith was born in 1944 in Marks, Mississippi. Growing up in a small town, he faced several hardships, including losing his father when he was just four years old. Smith also struggled with a serious bone disease as a child, which kept him on crutches for several years. Despite these challenges, he was determined to succeed. After recovering, he attended Yale University, where he developed an interest in business and logistics. During his time at Yale, Smith wrote a paper about a bold new idea — a system for delivering packages overnight across long distances. This concept would later become the basis for FedEx, one of the most successful logistics companies in the world.
Founding FedEx
After earning his economics degree in 1966, Smith joined the US Marine Corps and served two tours as a Marine officer during the Vietnam War. His military service gave him leadership experience and highlighted the value of logistics and teamwork under pressure. In 1971, Smith decided to act on the idea from his college paper and founded Federal Express with an initial investment of $4 million. Two years later, in 1973, FedEx officially launched with 14 small planes, 389 employees, and service to 25 US cities.
Revolutionising logistics
Smith designed FedEx’s famous “hub-and-spoke” model, which allowed packages to be centrally sorted and sent quickly across the country. This innovation enabled true overnight shipping. FedEx faced serious financial difficulties in its early years and nearly went bankrupt. Smith famously kept the company afloat by gambling FedEx’s last $5,000 in Las Vegas to pay for fuel — a bold move that paid off. Under his determined leadership, FedEx survived these tough times and rapidly grew into a major logistics company.
FedEx growth
When Smith stepped down as CEO in 2022, FedEx had expanded into a global powerhouse. The company had more than 700 airplanes, 200,000 trucks, 500,000 employees, and handled 17 million shipments every day. Even after leaving the CEO role, Smith stayed on as executive chairman, focusing on sustainability, innovation, and public policy.
Fred Smith’s visionary leadership changed the way the world does business. Overnight shipping became a global standard, and FedEx set the pace for modern logistics, leaving behind a lasting legacy that will continue to inspire future generations.