I INTRODUCTION 2
II FOUNDING 2
III GROWTH 2
IV RECENT DEVELOPMENTS 3
FDX Corporation, holding company for Federal Express Corporation and other businesses that provide rapid delivery of packages, letters, and other shipments within the United States and worldwide. Federal Express Corporation, also called FedEx, virtually invented the overnight-delivery industry, and within ten years rose from a startup operation to a $1 billion company. FDX Corporation's other subsidiaries include RPS, a business-to-business ground package carrier; Viking Freight, which offers freight services in the western United States; Roberts Express, a shipment company for express deliveries; and FDX Global Logistics, which provides business services to manage transportation, delivery, and warehouse operations. FDX Corporation is based in Memphis, Tennessee.
The idea for Federal Express was born in 1965 when a student at Yale University named Frederick Smith wrote a paper identifying the need for a private airfreight system to concentrate on delivering shipments.
Although he received a letter grade of C on his paper, by 1971 Smith had raised $90 million for his idea from investors, banks, and family members. With the money he purchased used corporate jets to launch his company.
Smith chose to base the company in Memphis because of its central location in the United States. Federal Express Corporation began business in April 1973 with a fleet of 14 jets serving 25 cities. It shipped 186 packages on its first day of business.
Within the first 26 months the company lost $29 million. However, by 1976 Federal Express Corporation recorded profits of $3.6 million. In 1979 the company earned profits of $21.4 million. The company's quick success was due to a number of factors. It was the only package-delivery company that emphasized speed and that used a fleet of private...