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FedEx Corporation
Formerly FDX Corporation
Type Public
ISIN US31428X1063
FoundedMay 5, 1971;50 years ago (1971-05-05)
(as Federal Express Corporation)
Little Rock, Arkansas
Founder Frederick W. Smith
Area served
Key people
  • Frederick W. Smith
    (Chairman and CEO)
  • Raj Subramaniam
    (President and COO)
Products Express Delivery [1]
Logistics Services
Business Services
Freight Services
RevenueIncrease2.svg US$169.693 billion (2019) [2]
Increase2.svg US$7.46 billion (2019) [2]
Increase2.svg US$6.54 billion (2019) [2]
Total assets Increase2.svg US$376.628 billion (2020) [2]
Total equity Increase2.svg US$24.170 billion (2020) [2]
Number of employees
650,000+ (2020)
Subsidiaries FedEx Office
FedEx Express
FedEx Ground
FedEx Freight
FedEx Services
FedEx Logistics
Website OOjs UI icon edit-ltr-progressive.svg

FedEx Corporation, formerly Federal Express Corporation and later FDX Corporation, is an American multinational conglomerate holding company which focuses on transportation, e-commerce and business services which is headquartered in Memphis, Tennessee. [3] [4] The name "FedEx" is a syllabic abbreviation of the name of the company's original air division, Federal Express, which was used from 1973 until 2000. FedEx today is best known for its air delivery service, FedEx Express, which was one of the first major shipping companies to offer overnight delivery as a flagship service. Since then, FedEx also started FedEx Ground, FedEx Office (originally known as Kinko's), FedEx Supply Chain, FedEx Freight, and various other services across multiple subsidiaries, often meant to respond to its main competitor, UPS. FedEx is also one of the top contractors of the US government and does assist in the transport of some United States Postal Service packages through its service FedEx SmartPost. [5]


FedEx's prominence in both the United States and the world have made it a common topic in popular culture, with examples including the film Cast Away as well as some of its marketing slogans (most famously "when it absolutely positively has to be there overnight"). In addition, FedEx has purchased the naming rights to FedExField of the NFL's Washington Football Team and FedExForum of the NBA's Memphis Grizzlies. FedEx's air shipping services have made its main hub or known as the "Superhub" at Memphis International Airport, the busiest cargo airport in the world by 2020 and Hong Kong [6] as second-busiest cargo airport in the world behind Memphis.


FedEx's first van displayed at the FedEx World Headquarters First FedEx van Memphis TN 2013-05-17 002.jpg
FedEx's first van displayed at the FedEx World Headquarters

The company was founded in Little Rock, Arkansas in 1971 as Federal Express Corporation by Frederick W. Smith, a graduate of Yale 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. He began formal operations in 1973, when he moved operations to Memphis. Smith cited his reasons for choosing Memphis International Airport included its location near the mean population center of the country and its lack of frequent inclement weather. [7]

The company grew rapidly, and by 1983 had a billion dollars in revenues, a rarity for a startup company that had never taken part in mergers or acquisitions in its first decade. 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. [7]

On October 2, 1997, FedEx reorganized as a holding company, FDX Corporation, a Delaware corporation. [8] The new holding company began operations in January 1998, with the acquisition of Caliber 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-truckload freight 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. [7]

In the 1990s, FedEx Ground planned, but later abandoned, a joint service with British Airways to have BA fly a Concorde supersonic jet airliner to Shannon Airport in Ireland with FedEx packages on board, and then FedEx would have flown the packages subsonically to their delivery points in Europe. Ron Ponder, a vice president at the time, was in charge of this proposed venture.

A Federal Express McDonnell Douglas MD-11 in 1995 FEDEX MD-11F(AF) (N612FE48605555).jpg
A Federal Express McDonnell Douglas MD-11 in 1995

In January 2000, FDX Corporation changed its name to FedEx Corporation and re-branded all of its subsidiaries. Federal Express became FedEx Express, RPS became FedEx 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, a customs duty and tax information company; TowerGroup and WorldTariff were re-branded to form FedEx Trade Networks. [9]

FedEx Corp. acquired privately held Kinko'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. [9] In June 2008, FedEx announced that they would be dropping the Kinko's name from their ship centers; FedEx Kinko's would now be called FedEx Office. [10] [11] In September 2004, FedEx acquired Parcel Direct, a parcel consolidator, and re-branded it FedEx SmartPost. [9]

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 which allowed FedEx to classify its operatives that 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. [12]

In June 2009, FedEx began a campaign against United Parcel Service (UPS) and the Teamsters union, accusing its competitor of receiving a bailout in an advertising campaign called "Brown Bailout". FedEx claimed that signing the Federal Aviation Administration re-authorization bill, which would let some of its workers unionize more easily (and, according to the Memphis-based company, "could expose [its] customers at any time to local work stoppages that interrupted the flow of their time-sensitive, high-value shipments"), [13] was equivalent to giving UPS a "bailout". Independent observers heavily criticized FedEx's wording, [13] claiming that it was "an abuse of the term". [13] FedEx Express employees are regulated under the Railway Labor Act. [14]

On January 14, 2013, FedEx named Henry Maier CEO and President of FedEx Ground, to take effect after David Rebholz retired on May 31, 2013. [15] On July 17, 2014, FedEx was indicted for conspiracy to distribute controlled substances in cooperation with the Chhabra-Smoley Organization and Superior Drugs. [16] According to the U.S. Department of Justice, "FedEx is alleged to have knowingly and intentionally conspired to distribute controlled substances and prescription drugs, including Phendimetrazine (Schedule III); Ambien, Phentermine, Diazepam, and Alprazolam (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." [17] 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". [18] 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. [19] [20] [21]

In April 2015, FedEx acquired their rival firm TNT Express for €4.4 billion ($4.8 billion; £3.2 billion) as it looked to expand their operations in Europe. [22] [23]

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. [24] [25]

In March 2018, FedEx announced the acquisition of P2P Mailing Limited, a last-mile delivery service, for £92 million to expand their portfolio. [26]

In September 2018, FedEx expanded FedEx Ground U.S. operations to six days per week due to the rise in demand for e-commerce. [27]

In January 2019, FedEx Trade Networks was re-branded to FedEx Logistics. [28]

In May 2019, FedEx announced the expansion of FedEx Ground U.S. operations to seven days per week during the holiday peak season. The service will continue year-round beginning in January 2020 for the majority of the U.S. population. [29]

On June 1, 2019, China filed a case against FedEx for allegedly undermining the rights of Chinese clients. [30] The investigation stemmed from allegations by Huawei that FedEx attempted to divert the shipping route of its packages without the company's prior authorization. [31] [32] [33] which in turn have been denied by FedEx. [31] [32] It has been reported that FedEx refused to deliver a used Huawei phone into the US. Writers at PC Magazine tried to ship a Huawei P30 from a UK office to a US one to find it sent back a few days later. [34] [35]

In June 2019, FedEx announced they would not be renewing their $850 million contract with Amazon for the company's U.S. domestic express delivery business. Amazon accounted for 1.3 percent of 2018 revenues. [36] In August 2019, FedEx announced the termination of ground deliveries for Amazon as well. [37]

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. [38]

In July 2020, the Air 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 the COVID-19 pandemic. [39] FedEx was criticized more broadly for providing inadequate protections and sick leave during the pandemic. [40]

In December 2020, FedEx acquired ShopRunner, an e-commence platform. [41]

In early March 2021, FedEx announced plans to make its operations carbon-neutral by 2040. [42] 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. [43] It will be the first customer to take delivery of GM's electric EV600 delivery vans, as part of the goal of an all-electric ground fleet by 2040. [44]

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. FedEx released a statement early the next morning, saying they were "deeply saddened" by the loss of their team members. [45]


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$73 billion in December 2020. [46] FedEx ranked No. 50 in the 2018 Fortune 500 list of the largest United States corporations by total revenue. [47]

in mil. USD$
Net income
in mil. USD$
Total Assets
in mil. USD$
Price per Share
in USD$

Operating units and logos

The FedEx logo is a wordmark designed in 1994 by Lindon Leader of Landor Associates, of San Francisco. [48] It consists of Fed in purple and Ex in orange. The FedEx wordmark is notable for containing a subliminal right-pointing arrow in the negative space between the "E" and the "X", which was achieved by designing a proprietary font, based on Univers and Futura, to emphasize the arrow shape. [48] Previously, the Ex was in a different color for each division and platinum for the overall corporation use. However, in August 2016, FedEx announced that all operating units will 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). [49]

FedEx Express Boeing 777F at Seattle-Tacoma International Airport, United States 04162016 FedEx B777F N861FD PANC NASEDIT2 (43991806764).jpg
FedEx Express Boeing 777F at Seattle-Tacoma International Airport, United States
FedEx Ground delivery truck FedEx Ground delivery truck Navistar.jpg
FedEx Ground delivery truck
FedEx Freight Truck in Las Vegas, Nevada FEDEX Freight (8915186339).jpg
FedEx Freight Truck in Las Vegas, Nevada
FedEx Express Delivery Van in Miami, United States FedEx Truck Downtown Miami (25706470807).jpg
FedEx Express Delivery Van in Miami, United States
TNT Express Electric Van in Europe TNT electric van .jpg
TNT Express Electric Van in Europe

FedEx is divided into the following main operating units:

SCAC codes

The Standard 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 the National Motor Freight Traffic Association in the 1960s to help the transportation industry for computerizing data and records. FedEx's codes include:


FedEx's primary competitor in the United States and most of its international destinations is the United Parcel Service (UPS). Both companies employ generally similar strategies; both companies' largest hubs for its air delivery are in the southern midwest (Memphis for FedEx and Louisville for UPS), both offer overnight, 2-day, and ground delivery as default options, both frequently use Ted Stevens Anchorage International Airport for trans-pacific shipments, [57] and both of their main hubs are some of the world's busiest airports by cargo traffic. FedEx's other main competitor is the United States Postal Service (USPS), as USPS offers an overnight service (Priority Mail Express), a 2-5 day service (Priority Mail), and an economy/ground service (First Class, Parcel Select Ground). To a lesser extent in the US, FedEx competes with SF Express and DHL, and while DHL's market share in the United States is rising, the shipping industry (not including USPS) in the United States is primarily dominated by UPS and FedEx; DHL is only a strong competitor to FedEx outside of the United States. [58]

While Amazon and its airline, Amazon Air, is competing with FedEx, Amazon currently does not offer shipping and logistics from consumer to consumer destinations or businesses that do not store their products at an Amazon warehouse. The fastest Amazon will guarantee an order of items not stored in local fulfillment centers is 2 days, meaning only other companies can guarantee overnight shipping covering everywhere in the United States. Additionally, approximately 75% of Amazon orders are fulfilled by Amazon itself, so FedEx competes with UPS and USPS primarily to fulfill those orders. [59]

Political donations and lobbying

According to the Center for Responsive Politics, FedEx Corp is the 79th largest campaign contributor in the United States, having donated over $29.8 million to federal candidates and committees since 1989, 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 the United States Postal Service. In 2001, FedEx sealed a $9 billion deal with the USPS 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 President George W. Bush. [61] [62] [63]

During the 2018 calendar year, FedEx spent nearly $10.2 million lobbying the federal government, [64] its lowest total since 2008 but more than any other company in the air transport industry. [65]

Tax avoidance

In December 2019, CNBC listed FedEx along with 378 additional Fortune 500 companies that "paid an effective federal tax rate of 0% or less" as a result of the Tax Cuts and Jobs Act of 2017. [66] 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. [67]


A FedEx delivery truck illegally parked in a bike lane in Washington, D.C., in January 2020 FedEx driver parked in bike lane.jpg
A FedEx delivery truck illegally parked in a bike lane in Washington, D.C., in January 2020

The firm was named by Fortune 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. [68]

FedEx was criticized for its partnership with the National Rifle Association, which it terminated in 2018 under pressure from activists. [69]

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. [70] [71] [72] They were criticized alongside peers in a letter from Washington, D.C.'s transportation agency in 2018. [73]

Promotional activities

Advertising slogans [74] [75]

Hidden within the logo in the negative space between the "E" and the "x" is an arrow, indicating that the company "moves." The logo was designed in 1994 by Lindon Leader of Landor Associates, who said they had developed 400 versions of the logo when they noticed that using an upper case "E" and lower case "x" created an arrow in the negative space, suggesting that "getting from point A to point B reliably with speed and precision" was the perfect message for the logo to send. [76]

John Moschitta ad

FedExForum in Memphis, Tennessee FedExForum.jpg
FedExForum in Memphis, Tennessee

In 1981, their advertising firm Ally & Gargano hired performer John Moschitta, Jr., known for his fast speech delivery, to do an ad for Federal Express titled "Fast Paced World". This single commercial would be cited years later by New York as one of the most memorable ads ever. [77]



The FedEx-sponsored No. 11 car at the 2012 Kobalt Tools 400, driven by Denny Hamlin Denny Hamlin at the 2012 Kobalt Tools 400 in Las Vegas.jpg
The FedEx-sponsored No. 11 car at the 2012 Kobalt Tools 400, driven by Denny Hamlin


Other sports

See also

Related Research Articles

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United States Postal Service Independent agency of the United States federal government

The United States Postal Service is an independent agency of the executive branch of the United States federal government responsible for providing postal service in the United States, including its insular areas and associated states. It is one of the few government agencies explicitly authorized by the United States Constitution.

United Parcel Service American package delivery company

United Parcel Service is an American multinational shipping & receiving and supply chain management company founded in 1907. Originally known as the American Messenger Company specializing in telegraphs, UPS has grown to become a Fortune 500 company and one of the world's largest shipping couriers. UPS today is primarily known for its ground shipping services as well as the UPS Store, a retail chain which both assists UPS shipments as well as provides tools for small businesses. In addition, UPS offers air shipping on an overnight or 2-day basis and delivers to PO Boxes through UPS SurePost, a subsidiary that passes on packages to the United States Postal Service for last mile delivery.

Package delivery

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DHL International courier and mail service

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Cargo consists of bulk goods conveyed by water, air, or land. In economics, freight is cargo that is transported at a freight rate for commercial gain. Cargo was originally a shipload but now covers all types of freight, including transport by rail, van, truck, or intermodal container. The term cargo is also used in case of goods in the cold-chain, because the perishable inventory is always in transit towards a final end-use, even when it is held in cold storage or other similar climate-controlled facility. The term freight is commonly used to describe the movements of flows of goods being transported by any mode of transportation.

A courier is a company, an employee of that company or a person who delivers a message, package or letter from one place or person to another place or person.

FedEx Ground American ground package delivery corporation

FedEx Ground is a subsidiary of the FedEx Corporation which specializes in ground transportation, usually long-haul truck transportation, for parcels. It is headquartered in Moon Township, Pennsylvania, a suburb of Pittsburgh. It was originally founded as Roadway Package System (RPS) as a lower cost competitor to UPS and took advantage of new barcode, material handling, and computer technologies. The FedEx Ground Network also contains FedEx Home Delivery for residential shipping and FedEx Ground Economy, the latter of which was formerly known FedEx SmartPost.

Caliber System Inc., known until 1996 as Roadway Services Inc., was a transportation holding company based in Akron, Ohio. During its history, Caliber owned a number of logistics companies including Roadway Express, Viking Freight, and Roadway Package System (RPS) among others. Roadway Express was spun off in 1995 and Caliber was acquired by FedEx in 1998 with subsidiaries becoming FedEx Ground, FedEx Freight, FedEx Custom Critical, and FedEx Global Logistics.

Air cargo

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FedEx Express Cargo airline based in Memphis, Tennessee, United States

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FedEx Office American office retail chain

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TFI International Inc. is a Canadian transport and logistics company based in Saint-Laurent, Quebec, a borough of Montreal. It operates primarily in Canada, the United States, and Mexico through 4 business segments: less than truckload (LTL), package and courier, logistics, and truckload. It has Canada's largest LTL business, largest trucking fleet, and in 2021 was ranked 6th in terms of revenue among both LTL and truckload North American carriers. Its trucking fleet consists of over 14,000 company-owned power units, nearly 10,000 owner-operator tractors, nearly 50,000 trailers and over 200 straight trucks.

Last mile (transportation)

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Tracking numbers are numbers assigned to packages when they are shipped. Tracking numbers are useful for knowing the location of time sensitive deliveries. It is a unique ID number or code assigned to a package or parcel. The tracking number is typically printed on the shipping label as a bar code that can be scanned by anyone with a bar code reader or smartphone.

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