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.jpg) FedEx Express Boeing 777F | |
| FedEx | |
| Formerly |
|
| Company type | Public company |
| ISIN | US31428X1063 |
| Industry | |
| Founded | May 5, 1971; 54 years ago (1971-05-05) inLittle Rock, Arkansas, U.S. |
| Founder | Frederick W. Smith |
| Headquarters | , U.S. |
Number of locations | 2,000 FedEx locations (2024) |
Area served | Worldwide |
Key people |
|
| Services | |
| Revenue |  US$87.69 billion (2024) |
 US$5.559 billion (2024) | |
| US$4.331 billion (2024) | |
| Total assets | US$87.01 billion (2024) |
| Total equity | US$27.58 billion (2024) |
Number of employees | 505,000 (2024) |
| Subsidiaries |
|
| Website | fedex.com |
| Footnotes / references [1][2] | |
FedEx Corporation, originally known asFederal Express Corporation, is an Americanmultinationalconglomerateholding company specializing intransportation,e-commerce, andbusiness services.[3][4] The company is headquartered inMemphis, Tennessee. The name "FedEx" is a syllabic abbreviation of its original air division,Federal Express, which operated under this name from 1973 until 1994.[5]
FedEx is best known for itsdelivery service, as well asFedEx Express,FedEx Ground,FedEx Office,FedEx Supply Chain, FedEx Freight, and several other services through a network of subsidiaries. These expansions have often been strategic moves to compete with its primary rival,UPS.
The company's air shipping operations are centralized at its primary hub atMemphis International Airport, making it a critical hub for global logistics.[6][7]
In 1971, the company was founded inLittle Rock, Arkansas asFederal Express Corporation byFrederick W. Smith, a graduate ofYale University. He drew up the company's concept in a term paper at Yale, in which he called for a system specifically designed for urgent deliveries. While his professor didn't think much of the idea, Smith pressed on.[8] He began formal operations in 1973, when he moved operations toMemphis. Smith said he choseMemphis International Airport for being near the mean population center of the country and for its placid weather.[6]
The company grew rapidly, and by 1983 had a billion dollars in revenue, a rarity for a startup company that had never taken part in mergers or acquisitions in its first decade.[citation needed] It expanded to Europe and Asia in 1984. In 1988, it acquired one of its major competitors,Flying Tiger Line, creating the largest full-service cargo airline in the world. In 1994, Federal Express shortened its name to "FedEx" for marketing purposes, officially adopting a nickname that had been used for years.[6]
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On October 2, 1997, FedEx reorganized as a holding company,FDX Corporation, aDelaware corporation.[7] The new holding company began operations in January 1998, with the acquisition ofCaliber System Inc. by Federal Express. With the purchase of Caliber, FedEx started offering other services besides express shipping. Caliber subsidiaries included RPS, a small-package ground service; Roberts Express, an expedited shipping provider; Viking Freight, a regional,less-than-truckloadfreight carrier serving the Western United States; Caribbean Transportation Services, a provider of airfreight forwarding between the United States and the Caribbean; and Caliber Logistics and Caliber Technology, providers of logistics and technology services. FDX Corporation was founded to oversee all of the operations of those companies and its original air division, Federal Express.[6]
In January 2000, FDX Corporation changed its name toFedEx Corporation and re-branded all of its subsidiaries. Federal Express became FedEx Express, RPS becameFedEx Ground, Roberts Express became FedEx Custom Critical, and Caliber Logistics and Caliber Technology were combined to comprise FedEx Global Logistics. A new subsidiary, called FedEx Corporate Services, was formed to centralize the sales, marketing, and customer service for all of the subsidiaries. In February 2000, FedEx acquired Tower Group International, an international logistics company. FedEx also acquired WorldTariff, acustoms duty and tax information company; TowerGroup and WorldTariff were re-branded to form FedEx Trade Networks.[6]
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FedEx Corp. acquired privately heldKinko's, Inc. in February 2004 and re-branded it FedEx Kinko's. The acquisition was made to expand FedEx's retail access to the general public. After the acquisition, all FedEx Kinko's locations offered only FedEx shipping.[6] In June 2008, FedEx announced that they would be dropping the Kinko's name from their ship centers; FedEx Kinko's would now be calledFedEx Office.[9][10] In September 2004, FedEx acquired Parcel Direct, a parcel consolidator, and re-branded it FedEx SmartPost.[6]
In April 2015, FedEx acquired its rival firmTNT Express for €4.4 billion ($4.8 billion; £3.2 billion) as it looked to expand its operations in Europe.[11][12]
In February 2016, FedEx announced the launch of FedEx Cares, a global giving platform, and committed to invest $200 million to strengthen more than 200 communities by 2020.[13][14]
In March 2018, FedEx announced the acquisition of P2P Mailing Limited, a last-mile delivery service, for £92 million to expand their portfolio.[15]
In June 2019, FedEx announced it would not be renewing its $850 million contract withAmazon for the company's U.S. domestic express delivery business. Amazon accounted for 1.3 percent of 2018 revenues.[16] In August 2019, FedEx announced the termination of ground deliveries for Amazon as well.[17]
In December 2020, FedEx acquired ShopRunner, an e-commerce platform.[18]
On March 29, 2022, founderFrederick W. Smith announced he would be retiring as CEO and would become executive chairman effective June 1, 2022. The company namedRaj Subramaniam, FedEx's current president and COO, as Smith's successor.[19][20]
On December 19, 2024, FedEx announced that it would spin off its freight truck division as a separate publicly traded company as part of a major corporate restructuring, scheduled to be completed by 2026. The spun-off freight truck company will retain the FedEx Freight name.[21]
FedEx Corporation divides its business into the following main operating units:
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FedEx Express is the company's original overnightcourier services, providing next day air service within the US and time-definite international service. It operates one of the largest civil aircraft fleets in the world, which has the largest fleet of wide bodied civil aircraft, and carries more freight than any other airline.[22] Included in this unit are:
FedEx Ground provides day-definite mail andpackage delivery to commercial locations in the US and Canada and residential locations in Canada. Its services are cheaper than the time-definite services offered by FedEx Express. The company was formerly Roadway Package System (RPS), a division of Caliber System.[6] The unit also includes:
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FedEx Freight is the largestless-than-truckload (LTL) freight carrier in the US, reportingUS$8.9 billion in revenue for 2021,[26] and operates LTL and other freight services in the US and Canada. The unit was formed in 2002 when FedEx bought regional US LTL carrierAmerican Freightways (AF) and established FedEx Freight as a parent company for AF, renamed FedEx Freight East, and FedEx's existing regional LTL subsidiary, Viking Freight, renamed FedEx Freight West. Viking had been a Caliber subsidiary when Caliber was acquired by FedEx in 1998. FedEx bought Lakeland, Florida-based national LTL carrier Watkins Motor Lines in 2006 and renamed it FedEx National LTL. All three operated as an independent subsidiaries of FedEx Freight[27] until January 2010 when they were merged with their parent to form a single entity, FedEx Freight Inc.[28] The unit is the parent of:
FedEx Logistics provides supply chain, specialty transportation, cross-border e-commerce, customs brokerage, and trade management technology and services. The division was known as FedEx Trade Networks until January 2019[29] and is composed of several FedEx acquisitions as well as the operations of former Caliber subsidiaries Caliber Logistics and Caliber Technology. Divisions include:
FedEx Office is the retail arm of the corporation offeringprint andphotocopy services, business services including signage and marketing, and retail sales of FedEx shipping services. The unit also included FedEx SameDay City, asame-day delivery service. FedEx Office was formerly an independent company, Kinko's, until it was acquired by FedEx in 2004 and rebranded as FedEx Kinko's. It was again rebranded in June 2008, becoming FedEx Office.[30] Its divisions include:
FedEx operates many different types of vehicles to deliver packages. They operate planes, trucks, vans and drones. According to the FedEx website, the company has over 210,000 motorized vehicles.[32]
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FedEx's primary competitor in the United States and most of its international destinations isUnited Parcel Service (UPS). Both companies employ generally similar strategies; both companies' largest hubs for its air delivery are in the southern United States (Memphis for FedEx andLouisville for UPS), both offer overnight, 2-day, and ground delivery as default options, both frequently useTed Stevens Anchorage International Airport for trans-pacific shipments.[33]
A similarity between FedEx and its competitors lies in their method of price calculation. Most major courier companies, including UPS and DHL, charge based on the greater of two values: the actual (physical) weight and the dimensional weight of the package. Physical weight refers to the measured weight of the parcel. Dimensional weight is calculated by multiplying the package's height, width, and length (in centimeters) and dividing the result by a standard divisor—typically 5,000 for international shipments.[34]
The FedEx logo is awordmark designed in 1994 by Lindon Leader of Landor Associates, of San Francisco.[35] It consists ofFed in purple andEx in orange. The FedEx wordmark is notable for containing a subliminal right-pointing arrow in thenegative space between the "E" and the "X", which was achieved by designing a proprietary typeface, based onUnivers andFutura, to emphasize the arrow shape.[35] Leader believed the logo promoted FedEx as "getting from point A to point B reliably with speed and precision".[36]
| Unit | Color |
|---|---|
| FedEx Express | Orange |
| FedEx Custom Critical | Blue then Red |
| FedEx Ground | Green |
| FedEx Freight | Red |
| FedEx Logistics | Platinum |
| FedEx Services | Platinum |
| FedEx Office | Blue |
| FedEx SameDay City | Platinum |
In the early 2000s, theEx was in a different color for eachdivision and platinum for the overall corporation use. However, in August 2016, FedEx announced that all operating units would adopt the purple and orange color logo over the next five years (the same as the original FedEx logo, and later used by FedEx Express).[37]
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For theCast Away film, FedEx provided access to their facilities (Memphis, Los Angeles, and Moscow) as well as airplanes, trucks, uniforms, and logistical support. A team of FedEx marketers oversaw production through more than two years of filming.[38] FedEx CEOFred Smith made an appearance as himself for the scene where Chuck is welcomed back, which was filmed on location at FedEx's home facilities in Memphis, Tennessee. The idea of a story based on a FedEx plane crashing gave the company "a heart attack at first," but the overall story was seen as positive. FedEx, which paid no money forproduct placement in the film,[39] saw an increase inbrand awareness in Asia and Europe following the film's release.[40]
The firm was named byFortune magazine as one of the top 100 companies to work for in 2013, citing the company's choice to downsize with voluntary buyouts rather than involuntary layoffs.[48]
As of July 2025[update], the FedEx Corporation board of directors is:[49]
For the fiscal year 2020, FedEx reported earnings of US$1.286 billion, with an annual revenue of US$69.217 billion, a decline of 0.7% over the previous fiscal cycle. FedEx's shares traded at over $273 per share, and its market capitalization was valued at over US$2,459 billion in December 2020.[50] FedEx ranked No. 50 in the 2018Fortune 500 list of the largest United States corporations by total revenue.[51]
| Year | Revenue in million US$ | Net income in million US$ | Total Assets in million US$ | Price per Share in US$[52] | Employees |
|---|---|---|---|---|---|
| 2005[53] | 29,363 | 1,449 | 20,404 | 85.38 | 138,100 |
| 2006[53] | 32,294 | 1,806 | 22,690 | 89.00 | 138,400 |
| 2007[53] | 35,214 | 2,016 | 24,000 | 74.15 | 143,000 |
| 2008[53] | 37,953 | 1,125 | 25,633 | 53.63 | 145,000 |
| 2009[53] | 35,497 | 98 | 24,244 | 70.32 | 140,000 |
| 2010[53] | 34,734 | 1,184 | 24,902 | 78.83 | 141,000 |
| 2011[53] | 39,304 | 1,452 | 27,385 | 71.21 | 143,000 |
| 2012[53] | 42,680 | 2,032 | 29,903 | 78.71 | 149,000 |
| 2013[53] | 44,287 | 2,716 | 33,567 | 124.03 | 160,700 |
| 2014[53] | 45,567 | 2,324 | 33,070 | 150.55 | 162,000 |
| 2015[53] | 47,453 | 1,050 | 36,531 | 129.93 | 166,000 |
| 2016[53] | 50,365 | 1,820 | 45,959 | 163.80 | 168,000 |
| 2017[53] | 60,319 | 2,997 | 48,552 | 221.48 | 169,000 |
| 2018[53] | 65,450 | 4,572 | 52,330 | 144.68 | 227,000 |
| 2019[53] | 69,693 | 540 | 54,403 | 137.77 | 239,000 |
| 2020[53] | 69,217 | 1,286 | 73,537 | 240.09 | 245,000 |
| 2021[53] | 83,959 | 5,231 | 82,777 | 241.83 | 289,000 |
| 2022[53] | 93,512 | 3,826 | 85,994 | 165.32 | 249,000 |
| 2023[53] | 90,155 | 3,972 | 87,143 | 246.54 | 529,000 |
| 2024[53] | 87,693 | 4,331 | 87,007 | 279.80 | 430,000 |
FedEx is mainly owned by institutional investors, who hold around 68% of all shares. The 10 largest shareholders in late 2024 were:[54]
In early March 2021, FedEx announced plans to make its operations carbon-neutral by 2040.[56][57] It's investing $2 billion in sustainable energy initiatives, including $100M for a new Yale Center for Natural Carbon Capture and upgrading its aircraft and ground transportation fleets.[58] It will be the first customer to take delivery of GM's electricZevo delivery vans, as part of the goal of an all-electric ground fleet by 2040.[59]
According toOpenSecrets, FedEx Corp is the 174th largest campaign contributor in the United States, having donated over $35.96 million to federal candidates and committees since 1990, 37% of which went to Democrats and 63% to Republicans.[60] Strong ties to the White House and members of Congress allow access to international trade and tax cut rebates as well as the rules of the business practices of theUnited States Postal Service. In 2001, FedEx sealed a $9 billion deal with theUSPS to transport all of the post office's overnight and express deliveries.
In 2005, FedEx was among 53 entities that contributed the maximum of $250,000 to sponsor the second inauguration of PresidentGeorge W. Bush.[61][62][63]
During the 2018 calendar year, FedEx spent nearly $10.2 millionlobbying thefederal government,[64] its lowest total since 2008 but more than any other company in the air transport industry.[65]
TheStandard Carrier Alpha Code (SCAC) is a unique code used to identify transportation companies. It is typically two to four alphabetic letters long. It was developed by theNational Motor Freight Traffic Association in the 1960s to help the transportation industry computerize data and records. FedEx's codes include:
In December 2007, the U.S.Internal Revenue Service "tentatively decided" the FedEx Ground Division might be facing a tax liability of $319 million for 2002, due to misclassification of its operatives as independent contractors. Reversing a 1994 decision that allowed FedEx to classify its operatives who own their own vehicles as independent contractors, the IRS audited the years 2003 to 2006, with a view to assessing whether similar misclassification of operatives had taken place. FedEx denied that any irregularities in classification had occurred, but faced legal action from operatives claiming benefits that would have accrued had they been classified as employees.[66]
In June 2009, FedEx began a campaign against UPS and theTeamsters union, accusing its competitor of receiving abailout in an advertising campaign called "Brown Bailout". FedEx claimed that signing theFederal Aviation Administration re-authorization bill, which would let some of its workersunionize more easily (and, according to the Memphis-based company, "could expose [its] customers at any time to localwork stoppages that interrupted the flow of their time-sensitive, high-value shipments"),[67] was equivalent to giving UPS a "bailout". Independent observers heavily criticized FedEx's wording,[67] claiming that it was "an abuse of the term".[67] FedEx Express employees are regulated under theRailway Labor Act.[68]
In July 2020, theAir Line Pilots Association International (ALPA), the union that represents FedEx Corp pilots, called for a suspension on the company's Hong Kong operations. According to the union, some members were subject to "extremely difficult conditions" at hospitals urged by government mandates due to theCOVID-19 pandemic.[69] FedEx was criticized more broadly for providing inadequate protections andsick leave during the pandemic.[70]
On July 17, 2014, FedEx was indicted for conspiracy to distribute controlled substances in cooperation with the Chhabra-Smoley Organization and Superior Drugs.[71] According to the U.S.Department of Justice, "FedEx is alleged to have knowingly and intentionally conspired to distribute controlled substances and prescription drugs, includingPhendimetrazine (Schedule III);Ambien,Phentermine,Diazepam, andAlprazolam (Schedule IV), to customers who had no legitimate medical need for them based on invalid prescriptions issued by doctors who were acting outside the usual course of professional practice."[72] A representative for the company contested these claims, stating that it would violate personal rights of customers to deny service and that "We are a transportation company—we are not law enforcement".[73] On July 17, 2016, the Department of Justice U.S. Attorney's Office confirmed in a statement that it had asked U.S. District Court Judge Charles Breyer to dismiss the indictment but also did not say why.[74][75][76]
Safe streets activists have criticized FedEx, along with other parcel delivery services, for frequently illegally parking their vehicles in bike lanes while making deliveries, a practice that endangers cyclists.[77][78] They were criticized alongside peers in a letter fromWashington, D.C.'s transportation agency in 2018.[79]
FedEx was criticized for its partnership with theNational Rifle Association of America, which it terminated in 2018 under pressure from activists.[80]
On June 1, 2019, China filed a case against FedEx for allegedly undermining the rights of Chinese clients.[81] The investigation stemmed from FedEx divertingHuawei packages destined for Asia to FedEx's headquarters in the United States instead without authorisation, after Huawei was added to the USEntity List.[82][83][84] FedEx later apologised for the "mistransportation".[82][83][85]
It has also been reported that FedEx refused to deliver a used Huawei phone into the US. Writers atPC Magazine tried to ship aHuawei P30 from a UK office to a US one to find it was sent back a few days later.[86][87]
In July 2019, China accused FedEx of holding back more than 100 packages that Huawei was trying to deliver to China. Chinese regulators said that the company committed "violations" when it diverted Huawei parcels.[88]
In December 2019,CNBC listed FedEx along with 378 additionalFortune 500 companies that "paid an effective federal tax rate of 0% or less" as a result of theTax Cuts and Jobs Act of 2017.[89]The New York Times reported that FedEx paid $1.5 billion in taxes after the 2017 fiscal year (effective tax rate of 34%) and then $0 after the 2018 fiscal year (effective tax rate of 0%) as a result of lobbying done by the company.[90]
A FedEx Ground facility was the site of a mass shooting in Indianapolis on April 15, 2021, causing nine deaths (including the perpetrator) and at least 6 injuries.
A FedEx truck inTexas veered into the oncoming lane and collided with an oncoming SUV in Texas in May 2024, causing all five people in the SUV to die.[91][92]
A FedEx driver, Santos M. Valentin, killed three people in July 2024 while driving a FedEx semi truck while using his cell phone. Santos has been charged with three counts of vehicular homicide. Valentin claimed the victim's vehicle came out of nowhere; however, video footage from inside the FedEx truck's cab showed Valentin looking at his phone for a long period leading up to the crash.[93][94][95]
Media related toFedEx at Wikimedia Commons| International | |
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