FedEx Founder Fred Smith, Who Revolutionized Global Shipping, Dies at 80
MEMPHIS, Tenn. — Frederick W. Smith, the combat-decorated Marine who turned a rejected college thesis into FedEx the engine of global e-commerce died peacefully Saturday at 80. His passing silences one of America’s most transformative business visionaries, whose “absurd” idea to deliver packages overnight now moves 17 million shipments daily across 220 countries.
From Combat to Commerce: The Birth of Overnight Revolution
Smith’s journey began where most ideas die: a Yale classroom. His 1965 economics paper proposing a hub-and-spoke delivery system famously earned a “C.” Professor’s note: “Concept impractical.”
But after two harrowing Vietnam tours earning a Silver Star, Bronze Star, and two Purple Hearts for extracting wounded comrades under fire Smith bet his $4 million inheritance on that “impractical” dream. On April 17, 1973, Federal Express launched with 14 planes and 389 employees. That first night? 186 packages flown from Memphis to 25 cities.
“Everything I built came from the Marines, not Yale,” Smith told the Memphis Business Journal in 2022. “In combat, you learn to adapt or die.”
$27,000 in Vegas Chips: The Gamble That Saved FedEx
By 1975, FedEx bled cash. One Monday, executives discovered only $5,000 remained—not enough to fuel planes. Smith boarded a flight to Las Vegas with company funds.
“He returned with $27,000 from blackjack just enough to pay the fuel bill,” recounted former CFO Art Bass in a 2010 documentary. “When we asked if he was nervous, Fred said: ‘After directing artillery in Khe Sanh? This was arithmetic.’”
The near-collapse forged Smith’s relentless ethos. His hub-and-spoke model didn’t just speed up mail it enabled just-in-time manufacturing for Apple, lifesaving Pfizer COVID vaccines, and Amazon’s next-day deliveries.
The Unseen Architect of Modern Life
While Smith amassed a $5.3 billion fortune, he avoided celebrity. His quiet influence pulsed elsewhere:
- Sports: As Washington Commanders co-owner, he forced the 2020 name change, calling the original “a moral failure.”
- Policy: Advised six presidents; declined Bush’s Defense Secretary offers to care for his terminally ill daughter.
- Philanthropy: Funded STEM scholarships for Marines’ children, growling: “Wealth without service is theft.”
Controversies: “Trade Wars Are Economic Suicide”
Smith’s bluntness sparked firestorms. He called an Amazon VP a “smartass” in a 2019 earnings call and sued The New York Times over tax reporting. When President Trump imposed tariffs in 2018, Smith fired back in the Wall Street Journal: “Trade built America. Protectionism is economic suicide.”
“Show Up Tomorrow With Fred’s Heart”
After stepping down as CEO in 2022, Smith focused on making FedEx carbon-neutral by 2040. Tributes flooded global headlines Sunday:
“He didn’t just deliver packages—he delivered progress.”
—President Biden, in a White House statement“My Yale ‘C’ student built an A+ empire. Godspeed, old friend.”
—Former President George W. Bush
Current FedEx CEO Raj Subramaniam told employees: “Come to work tomorrow with Fred’s compassion. Hug your kids. Then deliver excellence.”
Smith is survived by his wife Diane, nine children, and 14 grandchildren. Per his wishes, no public memorial will be held. In his final 2023 interview, he mused: “Graveyards are full of irreplaceable people. FedEx isn’t about me—it’s about moving the world forward.”