Fred Smith, founder of Federal Express, dead at 80. Smith founded the now world-famous international parcel delivery giant from scratch in 1973. He will be missed, but his legacy of innovation and leadership will continue through those who follow in his footsteps. With his leadership, FedEx grew into a worldwide force, with more than a half-million employees—delivering 24-million packages a day.
Born in 1943, Smith’s formative years were greatly influenced by his strong sense of service. After graduating from Yale University, he served in the U.S. Marine Corps as a second lieutenant. He served two combat tours in Vietnam, earning bravery and other medals for the wounds he received in combat. Navy captain and civil rights leader. He left the military as a captain in 1969.
During one of those years in Yale, in 1971, Smith developed what would become a truly pioneering business theory. This concept ultimately set the stage for FedEx’s groundbreaking hub-and-spoke delivery network. In 1973, he formally started Federal Express. He began with the little-known airline’s team of only 389 employees and a fleet of just 14 small commuter planes. Its inaugural flight carried 186 cargo containers from Memphis to 25 cities around the country.
FedEx’s operations grew rapidly under Smith’s leadership. The initial hub that was created in Memphis, Tennessee still serves as the company’s headquarters to this day. Over the years, FedEx expanded its fleet to include 705 aircraft and 200,000 vehicles, allowing it to serve a global customer base. Smith remained CEO until 2022 and led the company through its transformation into an industry powerhouse.
“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,” said Raj Subramaniam, who succeeded Smith as CEO.
Subramaniam reflected on Smith’s personal qualities: “He was a mentor to many and a source of inspiration to all. He was a proud father, grandfather, husband, Marine, and friend.”
Smith had a remarkable entrepreneurial success. He’s perhaps best known nationwide for his memorable cameo in the Tom Hanks film “Castaway.” His legacy remains deeply embedded in the fabric of the logistics industry, where his innovative ideas continue to influence operations worldwide.