FedEx: America’s First Single-Carrier Shipper

By Phin Upham

FedEx Express and FedEx are the same company, but there is a different starting point for each one. Fred Smith was studying at Yale when he realized a simple fact every business person takes for granted: time is money. Except the advent of technology meant more could be accomplished in less time, so time was worth even more money than it ever was before.

So Smith decided that he wanted to tackle the fundamental problem of shipping. Mass produced items needed to be delivered to both businesses and consumers, with the former’s business model and livelihood impacted by poor practices. Smith devised a technique using air travel where one carrier was responsible for the entire delivery. Although his professor reportedly graded his paper a “C,” Smith decided to carry on with the idea.

The company was founded in Little Rock, Arkansas in 1971. It took two years, but the company eventually began overnight operations in 1973. In 1975, customers got access to the first drop box to expedite the process of getting a package shipped.

FedEx began in 1997, which is the branch most younger consumers are aware of. The plan was to use a combination of ground and air to offer express shipping, but the company quickly turned to small package ground services and expedited shipping after it acquired Caliber. The acquisition of Viking Freight further helped the company send greater volumes of packages without the use of a van. Today’s FedEx is a shipping magnate capable of getting packages to anywhere in the world.

Phin Upham is an investor from NYC and SF. You may contact Phin on his Phin Upham website or Facebook page.