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MEMFIS, Tenn. (AP) — Fred Smith, founder of FedEx Corp., has passed away, the company said. He was 80 years old.
FedEx began operations in 1973, providing smaller parcels and documents faster than postal services. Over the next half century, Marine Corps veteran Smith oversaw the growth of the company, which became an economical swirl, as many other companies rely on it.
Based in Memphis, Tennessee, FedEx has become a global transportation and logistics company selling an average of 17 million cargo. Smith resigned as CEO in 2022, but remained an executive chairman.
A 1966 Yale graduate, Smith used business theory that he came up with at the university to create a delivery system based on coordinated air freight flights, centered around the main hub, the “hub and spoke” system.
The company also played a major role in the shift in business and industry in the US in greater use of time-sensitive delivery and lower dependency on large inventory and warehouses.
Smith once told The Associated Press that he came up with the name Federal Express.
At the time, Smith was about to land a massive shipping contract with the Federal Reserve, which had not worked out.
Initially, the Federal Express operated 14 small aircraft flying from Memphis International Airport to 25 US cities.
Smith’s father, also known as Frederick, built a small fortune in Memphis, with local bus lines and other business ventures. Following the university, Smith joined the US Marines and was appointed Deputy EU. He left the army as captain in 1969 after being decorated for courage and wounds in combat after two tours in Vietnam in 1969.
He told The Associated Press in a 2023 interview that everything he ran FedEx came from his experience with the Marines, not from what he learned at Yale.
Starting the Federal Express was not an easy task. Overnight cargo was new to American business, and the company had to have a fleet of planes and an interconnected aviation system deployed from the go-tart.
Although one of Memphis’ most famous and most well-known citizens, Smith generally avoided the public spotlight and dedicated his energy to his work and family.
Despite his lack of attention, Smith made a cameo appearance in the 2000 film “Castaway,” starring Tom Hanks. The film was about a FedEx employee stuck on the island.
“Memphis lost our most important citizen, Fred Smith,” Tennessee Rep. Steve Cohen said, citing Smith’s support for everything from the University of Memphis to the city’s zoo. “FedEx was the engine of our economy, and Fred Smith was a visionary founder. But more than that, he was a dedicated citizen who cared deeply about our city.”
Smith rarely made public donations made by him and his family, but he agreed to speak with the Associated Press in 2023 about a gift to the Marine Corps Scholarship Foundation.
“What I’m interested in is the order, not the naming or recognition,” Smith said at the time.
Asked what it means to contribute to public goods, he replied:
“America is the most generous country in the world. The charity contributions that Americans make every year are amazing. From the smallest to the large healthcare initiatives and the Gates Foundation and everything in between, everything in between, it’s amazing,” he said. “If you’re doing well in this country, I think it’s pretty chatty for you to be willing to return at least a significant portion of that to the public interest, and this is all in the great tradition of American philanthropy.”
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